I am looking to enter long $DBA this afternoon as long as this early morning strength is held throughout the day.
For the past couple of months the soft commodities have rallied hard off the winter lows, this includes ETNs like $JO, $CORN, $SGG.
The first chart below is a weekly view of the $DBA (the soft commodity ETF), as seen below, price broke out above a long term level of resistance, consolidated above it and now appears to be breaking out to new highs once again.
The next chart below is a daily chart of the $DBA, as evidenced by the pinched BBs (Bollinger Bands), volatility has decreased significantly over the past couple of weeks, likely foreshadowing a strong directional move in this space in the next couple of days.
The trade is to buy shares of $DBA versus 28.15 (about the 21 ema) for a swing trade as the price is continuous to show relative strength. If this is going to be a major multi-year bottom the likelihood of it giving you chance to enter is going to come rarely as more and more shorts begin to cover, shooting it higher and higher.
I have no position in this ETF as of now but if strength holds throughout the daily I will look to add one versus the above listed stop of 28.15.