PowerShares DB Crude Oil (NYSE:DXO) and Central Fund of Canada Limited (AMEX:CEF)
Q:Hi Mr Brian,
How will the trend be for DXO and CEF in the coming months? I have invested mostly in oil and gold.
A:We still have DXO in a Downtrend since 7/6/09 at $3.86. It has been trying to rally from the $3.33 low and stochastics are starting to trend higher. I would like to see a breakout above the 50-day moving average of $4.03 which is very close. Some of our proprietary indicators are moving up and should these factors converge, an Uptrend could be near. Stay tuned.
CEF has been in an Uptrend, according to our system, since 5/21. It did fall subsequently but managed to bounce nicely off of the 200-day moving average. Our indicators are also starting to turn higher. 50-day moving average ($11.86) looks to be near term resistance.