Day Trading Commodities with Crude Oil Futures - Cannon Trading

Futures Levels & Economic Reports 2.04.2015

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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 February 4, 2015

Hello Traders,

For 2015 I would like to wish all of you discipline and patience in your trading!

Day Trading Commodities with 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.

Next is the contract size. Crude Oil futures are based on 100,000 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, 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 API (American Petroleum Institute) 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 this article

 

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 March 2015 SP500 Nasdaq100 Dow Jones Mini Russell Dollar Index
Resistance 3 2091.50 4296.75 18088 1230.60 96.20
Resistance 2 2067.75 4259.75 17842 1213.10 95.56
Resistance 1 2054.50 4239.75 17706 1203.20 94.66
Pivot 2030.75 4202.75 17460 1185.70 94.02
Support 1 2017.50 4182.75 17324 1175.80 93.12
Support 2 1993.75 4145.75 17078 1158.30 92.48
Support 3 1980.50 4125.75 16942 1148.40 91.58
Contract Apr. Gold Mar.Silver March Crude Oil Mar. Bonds March   Euro
Resistance 3 1310.9 18.35 59.11 152 4/32 1.1800
Resistance 2 1298.7 18.05 56.68 151 15/32 1.1670
Resistance 1 1280.2 17.67 54.56 150 14/32 1.1578
Pivot 1268.0 17.37 52.13 149 25/32 1.1448
Support 1 1249.5 16.99 50.01 148 24/32 1.1356
Support 2 1237.3 16.69 47.58 148 3/32 1.1226
Support 3 1218.8 16.31 45.46 147 2/32 1.1134
Contract March Corn March Wheat March Beans March SoyMeal March bean Oil
Resistance 3 404.4 516.1 1019.42 364.37 31.55
Resistance 2 395.6 514.9 1006.33 354.53 31.34
Resistance 1 390.7 514.3 996.67 347.57 31.07
Pivot 381.8 513.2 983.58 337.73 30.86
Support 1 376.9 512.6 973.9 330.8 30.6
Support 2 368.1 511.4 960.83 320.93 30.38
Support 3 363.2 510.8 951.17 313.97 30.11
5. Economic Reports

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

All times are Eastern time Zone (EST)

Date 3:49pm Currency Impact Detail Actual Forecast Previous Graph
WedFeb 4  3:15am EUR Spanish Services PMI 54.5 54.3
3:45am EUR Italian Services PMI 49.9 49.4
4:00am EUR Final Services PMI 52.3 52.3
5:00am EUR Retail Sales m/m -0.1% 0.6%
8:15am USD ADP Non-Farm Employment Change 224K 241K
9:45am USD Final Services PMI 54.3 54.0
10:00am USD ISM Non-Manufacturing PMI 56.6 56.2
10:30am USD Crude Oil Inventories 8.9M

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 judgment in trading.

 

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

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