DBA represents something of a Lazarus play as some of its holdings are among the worst-performing commodities over the past three years, notes technical analyst Chris Kimble of Kimble Charting Solutions. Kimble points out that over the past three years, coffee, sugar, soybeans and corn are four the six worst-performing commodities.
That is over 51% of DBA’s weight right there, indicating buying low has worked with these commodities and DBA. It could be a sign that DBA has more upside in store.
PowerShares DB Agriculture Fund
ETF Trends editorial team contributed to this post.