Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
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With the energy numbers coming out tomorrow, which impact crude oil quite a bit, I thought it would be a good time to share this article I wrote once again:
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 market 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 is the first notice day and last trading day for crude oil futures in order to always make sure we are trading the proper month with the most liquidity and avoid any chance of getting into delivery situation.
Another factor is trading hours. At the time I am sharing my thoughts with you, April 8th 2013, 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.
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.
Futures Trading Levels
|Contract June 2018||SP500 #ES_F||Nasdaq100 #NQ_F||Dow Jones #YM_F||Mini Russell #RTY_F||BitCoin Index #XBT_F|
|Contract||June Gold #GC_F||May Silver #SI-F||May Crude Oil #CL-F||June Bonds #ZB_F||June Euro #6E_F|
|Resistance 3||1366.9||17.09||68.15||146 24/32||1.2546|
|Resistance 2||1359.5||16.95||67.45||146 13/32||1.2507|
|Resistance 1||1354.9||16.86||66.96||146 3/32||1.2467|
|Support 1||1342.9||16.63||65.77||145 14/32||1.2389|
|Support 2||1335.5||16.49||65.07||145 3/32||1.2350|
|Support 3||1330.9||16.40||64.58||144 25/32||1.2310|
|Contract||May Corn #ZC_F||May Wheat #ZW_F||May Beans #ZS_F||May SoyMeal #ZM_F||May Nat Gas #NG_F|
Economic Reports, source:
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.