The DBA (Deutsche Bank Powershares Agricultural Commodity Fund, ETF) is showing some pop today finally, no doubt in reaction to the sharp upmoves in soybeans and corn, which indicate the start of new post-correction, recovery uplegs.

Looking at the daily charta, the DBA remains stuck within a sideways coil-type pattern that is attached to a Double Bottom at 35.38/37 established on 4/01 and 5/01. A "coil" attached to the "Double Bottom" in my experience represents the "rest period" prior to a sharp recovery rally period. In this case, I am expecting the DBA to hurdle near term resistance at 37.15/20, which should trigger upside follow-through to 38.00/30 next on the way to 40.00+.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.