DBB Breaks Out From Resistance

by Jim Woods 10/23/09

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Editor's note: OptionsZone editor Jim Woods will be filling in for Sam Collins today.

PowerShares DB Base Metals Fund (DBB) -- This exchange-traded fund (ETF) is designed to track the Deutsche Bank Liquid Commodity Index -- Optimum Yield Industrial Metals Excess Return (DBBMIX). DBBMIX is intended to reflect the base metals sector, specifically aluminum, zinc and copper.

DBB Chart

Chart Legend

With commodities and international equities leading the list of outperforming ETFs, investors may want to add DBB to their portfolio in order to participate in the further appreciation of these commodities, and as a hedge against further declines in the U.S. dollar.

On Sept. 21, with DDB at $18.21, the Trade of the Day said, "A break from the resistance at about $19 has a trading target of $22."

The breakout occurred on Oct. 19, and we'll stick with that target.

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