Commodities are having a standout 2026, and this ETF has momentum on its side
Commodities have been a notable area of strength year to date, and with U.S. equities in a corrective phase, it can be beneficial to broaden exposure to alternative assets with improving long-term momentum. The energy complex qualifies, but we also encourage investors to consider agricultural commodities, several of which have positive technical catalysts. The Invesco DB Agriculture Fund (DBA) is a popular way to gain exposure, holding futures contracts tied to corn, soybeans, wheat and other agricultural commodities. DBA has broken out from a one-year triangle pattern, marking a resumption of its secular uptrend in a bullish long-term development. Intermediate-term momentum has accelerated with the breakout, which supports upside follow-through beyond last year’s peak. The triangle breakout generates a long-term measured move projection near $29.30, approximately 9% above current levels. The chart of DBA does not appear overextended in the near term, suggesting the triangle breakout is actionable. Short-term momentum is positive and expanding per the daily moving average convergence/divergence histogram, and the daily stochastics have turned higher in a bullish “pop” that supports upside follow-through in the near term. For short-term traders, an upside objective is resistance at the 2025 high, near $27.50. To manage risk, we would reduce long positions if DBA falls back below former trendline resistance near $26.00. The ratio of DBA to the SPX has reversed a multi-month downtrend, suggesting DBA’s recent outperformance versus the SPX reflects a meaningful shift in relative momentum. The trend shift in the ratio supports further outperformance for DBA, and agricultural commodities in general, over the SPX. This is not unusual during a corrective phase in equities. Overall, DBA’s breakout from a one-year triangle acts as a positive technical catalyst and aligns with strengthening momentum in commodities more broadly. We expect DBA to remain a beneficiary of rotation into alternative assets. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. 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