Earlier this morning, crude oil finally rose above $115 a barrel (CLK8).  With oil rising at a rapid pace once again, commodities are soon to follow.  Some analysts such as the Option Addict feel commodities will push higher as it did about two months ago.  In anticipation of a potential breakout, I’ve jumped into the bandwagon with a small position in DBA, the PowerShares DB Agriculture Fund.  Note the level of support around $39.  Here’s how I’m playing the ag game.  I’m currently in DBA May 40 Calls with a stop right under $39 and a price target of $42.  The two bottoming tail hammers also bode well for a bullish position.

With oil, gold, gasoline, commodities, and everything else rising at a rapid pace, perhaps it’s the best time to jump into the oils such as Exxon (XOM) and others?  Actually, I may have found a stock to short.  Take a look at Petroleo Brasileiro, also known as PetroBras (PBR).  For those keeping up with recent news, PBR may have found new patches of

drillable crude in Brazil and as a result spiked about $12 Monday.  But take a look at the chart.  Note the action from the past couple of months.  It appears that a double top may be in the works on PBR.  A double top is normally a major reversal pattern that’s found after a extended run up.  In order to confirm, PBR would need to bounce off the $125 resistance and break $97.50.  However, working in that channel alone can net about 25 points.  It’s an interesting play and something I’ll be keeping an eye on over the next few days.