Day Trading Crude Oil Futures 6.08.2016

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1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Wednesday June 08, 2016

Hello Traders,

For 2016 I would like to wish all of you discipline and patience in your trading!

Voted #1 futures trading blog! 

Crude Oil numbers tomorrow morning. As of lately it has been one of the more followed reports by all markets…..

I wrote this piece about day trading crude oil futures a couple of years ago and it is still very valid in my opinion:

Trading 102: Day Trading Using fear and greed ( using Crude Oil futures as an example)

Crude Oil Futures volatility offers a “different market personality” than stock index futures. Here is some of the things you need to know about day trading crude oil futures:

By: Ilan Levy-Mayer, Cannon Trading Commodities Broker & VP

Crude Oil is one of MY favorite futures markets for day trading. Before I dive in and share with you how the volatility in crude oil fits my risk tolerance for day trading and provide a couple of chart examples, we should review some of the specifications of Crude Oil Futures.

Crude Oil Futures have monthly expiration. So each month we trade a different contract month, so one needs to know when the first notice day and last trading day for crude oil futures are, in order to always make sure we are trading the proper month with the most liquidity and avoid any chance of getting into a delivery situation.

Next is the contract size. Crude Oil futures are based on 1000 barrels. To be honest from a day trading perspective all I care is that each tick or 1 cent fluctuation is $10 against me or in my favor per contract. That means that a move from 92.94 to 92.74 = $200.

Another factor is trading hours. At the time I am sharing my thoughts with you, April 8th 2013 ( I wrote this one a while back but the examples and logic are still very current!) , crude oil futures trade on the CME Globex platform and trade from 5 PM CDT until the next day at 4 PM CDT. That is 23 of straight trading hours. I definitely don’t recommend day trading this market 23 hours…but it is good to know the trading hours.

Volume in crude oil futures is pretty good to trade in my opinion. Averaging about 300,000 contracts per day.

One last pointer to touch on is the EIA (Energy Information Administration) report that normally comes out Wednesday at 9:30 CDT (on short weeks, holidays etc. , this report will be pushed to Thursday at 10 AM CDT). I tell my clients that this report is way too volatile and I like to be out 5 minutes before and not resume trading 5 minutes until after the report comes out. This report by itself deserves a writing but on short, the report provides information on how our stock pile is doing ( = supply/demand)  and the market will move based on the numbers versus what was expected. Again as a day trader, your main job is to know about this report, when it comes out and in my opinion stay out of the market during this time…

Read the rest of the article along with chart examples, specific trade set ups and other trading tips which can be applied to many markets not just the crude oil market

GOOD TRADING

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

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Futures Trading Levels 

Contract June 2016 SP500 Nasdaq100 Dow Jones Mini Russell Dollar Index
Resistance 3 2128.83 4570.00 18072 1194.33 94.38
Resistance 2 2123.42 4557.75 18033 1188.97 94.23
Resistance 1 2117.33 4535.75 17982 1183.93 94.05
Pivot 2111.92 4523.50 17943 1178.57 93.90
Support 1 2105.83 4501.50 17892 1173.53 93.72
Support 2 2100.42 4489.25 17853 1168.17 93.57
Support 3 2094.33 4467.25 17802 1163.13 93.39
Contract Aug. Gold July Silver July Crude Oil Sept. Bonds June   Euro
Resistance 3 1263.3 16.76 51.95 167 8/32 1.1424
Resistance 2 1256.2 16.62 51.24 166 31/32 1.1403
Resistance 1 1251.2 16.51 50.86 166 22/32 1.1382
Pivot 1244.1 16.38 50.15 166 13/32 1.1361
Support 1 1239.1 16.27 49.77 166 4/32 1.1340
Support 2 1232.0 16.13 49.06 165 27/32 1.1319
Support 3 1227.0 16.02 48.68 165 18/32 1.1298
Contract July Corn July Wheat July Beans July SoyMeal July Nat Gas
Resistance 3 435.2 522.8 1170.08 427.57 2.59
Resistance 2 431.6 518.2 1159.42 421.53 2.54
Resistance 1 429.7 513.6 1150.33 414.67 2.51
Pivot 426.1 508.9 1139.67 408.63 2.46
Support 1 424.2 504.3 1130.6 401.8 2.4
Support 2 420.6 499.7 1119.92 395.73 2.38
Support 3 418.7 495.1 1110.83 388.87 2.35

Economic Reports

source:http://www.forexfactory.com/calendar.php

All times are Eastern time Zone (EST)

Date 4:00pm Currency Impact Detail Actual Forecast Previous Graph
WedJun 8  4:30am GBP
Manufacturing Production m/m
0.0% 0.1%
GBP
Industrial Production m/m
0.0% 0.3%
10:00am GBP
NIESR GDP Estimate
0.3%
USD
JOLTS Job Openings
5.67M 5.76M
10:30am USD
Crude Oil Inventories
-3.2M -1.4M
1:01pm USD
10-y Bond Auction
1.71|2.7
7:01pm GBP
RICS House Price Balance
36% 41%

This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.

Tags: > > Posted in: Crude Oil   | Day Trading   | Future Trading News  

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