Wheat has made a couple of daily-scale compressions lately and prices broke upward from these levels yesterday. We would buy some now, as this appears to be that ‘clear break’ that has been lacking in the financial markets. There is one word of caution, namely that this market has also compressed at a weekly scale – as shown in the second chart. This should not stop you buying now as the daily compression break may show that there is enough impetus to break the weekly version upwards too. This would mean getting a ‘head start’ on a potentially multi-week long position and yet it should be possible to place a reasonably close protective stop – under the weekly compression low point which is at 478 in the September contract show here and 468 in the July. We have bought July.
