Is This Inflation ETF Breaking Out?

As long as inflation continues to surge, so should the Invesco DB Commodity Index Tracking Fund ETF DBC. It had gained about 40% this year and appears to be breaking out.

When an ETF trades above a resistance level, traders say it has "broken out." This could have bullish implications.

A resistance level is a large group or concentration of sellers gathered around the same price. As you can see on the below chart, in this case, it was $28.50.

Sellers kept a top on the price of DBC at this important level since March, but now the shares are higher. This could illustrate the investors who created the resistance are gone.

Pre-IPO Offer: Get A Piece Of A Nearly $5T Global Opportunity By Joining BOXABL As An Early Shareholder At Just $0.80/Share

• Massive Demand & Disruptive Potential – Boxabl has received interest for over 190,000 homes, positioning itself as a major disruptor in the housing market.
• Revolutionary Manufacturing Approach – Inspired by Henry Ford’s assembly line, Boxabl’s foldable tiny homes are designed for high-efficiency production, making homeownership more accessible.
• Affordable Investment Opportunity – With homes priced at $60,000, Boxabl is raising $1 billion to scale production, offering investors a chance to own a stake in its growth.

Share Price: $0.80

Min. Investment: $1,000

Valuation: $3.5B

Click Here To Invest For Just $0.80/Share ($1000 Min)

With this large amount of supply out of the way, buyers will be forced to pay higher prices to acquire shares. This could force DBC into a new uptrend.

To learn more about trading, check out the Benzinga Trading School.

Photo: Zenzen via Shutterstock