With summer well behind us, it may seem counterintuitive that active traders are now starting to shift their focus to agriculture commodities. As we'll discuss below, rising prices during the final months of the growing season have triggered bullish crossovers between major 澳洲幸运5官方开奖结果体彩网:moving averages on many charts. The common technical buy signal is often used to identify early st🦂ag▨es of a major of a long-term uptrend, so this sector could be of specific interest over the final months of 2020.

Invesco DB Agriculture Fund (DBA)

In recent times, many active traders interested in niche market segments such as agriculture commodities often turn to 澳洲幸运5官方开奖结果体彩网:exchange-traded products such as the Invesco DB Agriculture Fund (DBA) instead of the 澳洲幸运5官方开奖结果体彩网:futures market. Looking at the chart below, you can see that the price action since early September is clearly in favor of the bulls. The break beyond the 澳洲幸运5官方开奖结果体彩网:resistance of the 200-day moving average and subsequent crossover between the long-term moving averages, ♑as shown by the blue circle, is being used by many to mark the early stages of a major uptren🅠d.

Due to the lucrative risk/reward setup at current levels, we'd expect many followers of technical analysis to place buy orders as close to current levels as possible and protect against a sudden shift in market sentiment by placing 澳洲幸运5官方开奖结果体彩网:stop-loss orders below the lower 澳洲幸运5官方开奖结果体彩网:trendline or the 200-day movin✨g average, depending on risk tolerance and investment horizon.

Teucrium Corn Fund (CORN)

As one of the top holdings of the DBA ETF, corn prices are of often the focus of many traders when it comes to agriculture commodities. Looking at the chart of the Teucruim Corn Fund (CORN), y𒁏ou can see from the chart that the initial resistance from the 200-day moving average was overtaken in September, and the bulls 𝐆have not really looked back.

The strong move in recent weeks has also triggered a bullish crossover between the 50-day and 200-day moving averages, which will be used by many active traders to mark the beginning of a major move higher. From a risk-man𒈔agement perspective, stop-loss or🗹ders will most likely be placed below the dotted trendline or $12.85, depending on risk tolerance and outlook.

Teucrium Wheat Fund (WEAT)

With a weighting of 15.28%, exposure to spot wheat prices represents the top holding of the DBA ETF. Looking at the chart of the Teucrium Wheat Fund (WEAT) below, you canꦗ see that the move above the 200-day moving average and bounce higher c♋learly shows that the bulls are in control of the momentum.

Based on this pattern, some traders may use the recent weakness as an opportuni✱ty to look for an꧒ entry price near the newly formed support of the dotted trendline at $5.80. Traders will also want to take note of the recent crossover between the long-term moving averages because it suggests that a long-term uptrend could just be getting underway.

The Bottom Line

Agriculture commodities have risen in prominenc⛦e in recent weeks, which for many may seem like it is weeks late. However, based on the charts discussed above, it is clear that active trade🌞rs will be betting on a move higher over the final months of 2020.

At the time of writing, Casey Murphy did not own a position in any of the assets mentioned.