There have been encouraging signs for bulls in some commodity markets. Starting with a couple of indices that we follow, compressions are stating to break upward:
In addition, wheat broke upward from daily-scale compressions yesterday, and pullbacks can be bought (today’s early dip, for example). Crude oil compressed and moved up some days ago and is now hovering just above the compressed levels. This too looks bullish, but heating oil hasn’t yet joined in, so it might be better to wait a short while before deciding to buy energy:
Other markets have yet to break. As mentioned above, Heating oil has compressed but Sugar has too, meaning that all are poised to move, so we are watching closely. AS we write, Copper is breaking upward and we would buy that ‘at market’:
All signals courtesy of software supplied by our friends at Parallax Financial Research www.pfr.com
