Coming off of last week’s two day OPEC + Russia meeting where the decision was to pull 1.2 million barrels of oil daily from the markets, Light Sweet Crude has begun to show strength. The proof of this agreement will however ‘be in the pudding’, as we wait to see if each of the parties involved, uphold their end of the agreement.
Over the past couple of weeks, Crude has tested the $50 level but failed to close below it. Therefore from a trading standpoint we are looking for a breakdown below $50 or a meaningful push above the $55 level.
Recent talk of a trade war between the United States and China have stalled the upward trend in Soybeans. With this stall, support has formed around 1045 in the May 2018 contract. I have recently exited my long position in this market as I wait a resumption of a trend.
With support established around 2552 and resistance at 2680 being repeatedly tested, the market appears to be setting-up for a move higher. The question is will this market desire to move higher out-weigh the influence of world political events.