Energy Futures Archives - Support & Resistance Levels

Energy Futures

Category Archives: Energy Futures


Weekly Newsletter 1112: Trading Futures Spreads + Futures Support Resistance Levels for the Week Ahead

August 26th, 2022 Filed under Energy Futures, futures trading education, Weekly Newsletter | Comment (0)

Cannon Futures Weekly Newsletter Issue # 1112

Dear Traders,

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Trading 201: Trading Futures Spreads – Basic But Important Strategy

“A Basic And Important Strategy For Commodities Traders Using Spread Trading.”
By: Mark O’Brien, Cannon Trading Commodities Broker
Over my 20+ year career as a commodities broker, I have studied and traded a wide range of approaches to trading the futures markets. From candlestick formations to the commodity channel index, from condors to turtle trading, there’s an enormous catalog of tools and methods available for traders to consider.
One method I have noticed is surprisingly underrepresented among retail traders is futures spread trading, where a single position in the market consists of the simultaneous purchase of one futures contract and sale of a related futures contract as a unit. I call it surprising because some of the most invested players in futures trading – and arguably the most sophisticated – include large speculators and commercial firms who regularly employ spreads. This includes traders in the markets who often actually buy and sell the physical commodities we trade. Farmers, ranchers and other food growers along with food producers, petroleum companies who either drill for oil or natural gas or refine these products – or both, financial institutions with enormous holdings in treasuries, equities or currencies, mining interests and their buyers – all these areas of production and distribution employ spreads from time to time as an important aspect of their businesses. Indeed, spread trading is a fundamental and essential part of the commodities futures markets.
At the same time, despite the remarkable increase in interest and in the growth in the volume of the futures markets over the years, spread trading is typically dismissed by most other traders in search of a trading strategy. With so much attention focused on other approaches related to straightforward directional trading (and within that category, day-trading) it’s not difficult to see how spread trading can be overlooked.

 

 

Market Pick Review for the Week:

September Natural Gas touched $10.028 per million British thermal units intraday this week, a 14-yr. high.
Futures Natural Gas Chart
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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 when it comes to Futures Trading.

Futures Trading Levels

08-16-2022

Weekly Levels

 

Reports, First Notice (FN), Last trading (LT) Days for the Week:

https://mrci.com

Date Reports/Expiration Notice Dates

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 herein 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


FOMC Minutes, Crude Oil Inventories + Futures Trading Levels 8.17.2022

August 16th, 2022 Filed under Crude Oil, Energy Futures, Future Trading News | Comment (0)

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Busy Wednesday tomorrow as traders will listen closely and try to analyze the FOMC minutes of the last FOMC meeting. Before that retail sales numbers will be watched closely as well.
9:30 AM Central time we will have crude oil numbers in a volatile energy sector.
Did you know that the MICRO crude Oil contract is trading with good volume?
At times when volatility is high, it is not a bad idea to consider the smaller, 1/10th the size micro CRUDE Oil contract.
December Coffee is front month.
Sierra Charts Teton Order Routing demo

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 when it comes to Futures Trading.

Futures Trading Levels

08-17-2022

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker
 1-800-454-9572 Explore trading methods. Register Here


Economic Reports, Source: 

Forexfactory.com

 

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.


Micro Crude Oil + Trading August 9th Futures Levels

August 8th, 2022 Filed under Crude Oil, Energy Futures, Future Trading News | Comment (0)

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Crude Oil Trading Updates, Opportunities and Risks:

By John Thorpe, Senior Broker
Have you had an opportunity to trade the financially settled Micro WTI Crude oil contract? I have and this contract is just what the doctor ordered. When you are faced with the high price and volatility we have seen over the past few years you won’t have to make a decision to either be out or be in the WTI Crude oil contract where we have seen $10,000.00 daily price swings.
With the Micro, which is one tenth the size of the 1000 barrel WTI Crude contract or 100 barrels only, each dollar move per contract in the price of Crude oil is $100.00 rather than $1000.00. What this allows you to do is adjust the amount of leverage you want and not expose yourself to the volatility of the larger CL contract.
The symbol is MCL U22 for the current September contract.
According to the CMEGroup, 33,000 unique traders have come to the CME to trade this contract since it was listed a year ago. The CME Group declares traders from over 145 countries trade the Micro crude oil contract and traders from over 33 countries have traded the new Options contracts on the Micro Crude contract.
Transaction Costs are inexpensive for this contract as exchange fees are .50 per contract.
As always, plan your trade and trade your plan. Please contact your broker or Cannon Trading with any questions.

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 when it comes to Futures Trading.

Futures Trading Levels

08-08-2022

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker
 1-800-454-9572 Explore trading methods. Register Here


Economic Reports, Source: 

Forexfactory.com

 

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.


Natural Gas New Highs & Futures Support and Resistance Levels 5.26.2022

May 25th, 2022 Filed under Energy Futures, Future Trading News | Comment (0)

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The State of Affairs in Energy Futures

by Mark O’Brien, Senior Broker
In recent weeks, we’ve seen declines in global equity markets as well as in consumer and investor sentiment. We’re on the leading edge of a near 8-month rise in inflation to 40-yr. highs – rising at an equal 40-year record pace.
At the same time, some of the latest global inflation data has been inconclusive. Short-term inflation momentum which measures a three-month annualized rate as opposed to the pace of price increases in one month compared with the same month a year earlier (think CPI) have started to soften. The Commerce Department’s monthly personal-consumption expenditures report has shown consumers are shifting to a more-normal balance of spending on goods and services compared to the demand surge earlier in the Covid-19 pandemic.
Regardless of how conditions play out in the coming weeks and months, don’t count on energy prices falling off any time soon. Nationally and globally, even if we experience an economic decline and energy demand subsides, the aftereffects will be slight. Both the supply and demand sides of the equation will account for stubbornly high prices both at the pump and in natural gas. Strategic stockpiles are in need of replenishing, the expanding ban on Russian imports is only beginning to impact prices, structural adjustments to realign energy supply chains to accommodate for the war will take months or longer and seasonal summer demand is on the horizon.
EVEN BETTTER…reach out to a Cannon Trading broker.
Good Trading!
Natural Gas Monthly Chart

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 when it comes to Futures Trading.

Futures Trading Levels

05-25-2022

Futures Support and Resistance Levels 5.26.2022

 

 

Improve Your Trading Skills

Get access to proprietary indicators and trading methods, consult with an experienced broker
 1-800-454-9572 Explore trading methods. Register Here


Economic Reports, Source: 

Forexfactory.com

 

 

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.


NASDAQ Futures Down 3% + Futures Trading Levels for 01.06.2022

January 5th, 2022 Filed under Energy Futures, Financial Futures, Future Trading News, Indices | Comment (0)

Pass the Knowledge – Feel Free to Forward to a Friend!
Get Real Time updates and more on our private FB group!
Hello Traders,
Happy and prosperous New Year from the Cannon Trading Team!
We appreciate the chance to serve your futures trading needs and are here to assist.
FOMC Minutes report triggered one of the larger sell offs we have seen in recent months. NQ and RTY were both down over 3% when the trading day was over.
Hope it helps.
*While I have no idea were the market is going from day to day, minute to minute, week to week etc. I do know that in the past, some of the sharpest and largest rallies were short covering after a large sell off. More often than not market sell offs and volatility like we are seeing do not end up as V type of action but more like U or W when it is all said and done.
*Expect the unexpected…
* Have an idea of what you are looking to do, keep in mind possible risk and have a game plan. Now more than ever, plan your trade and trade your plan!
* Think money management, hedging risk while you are still trying to figure out how to profit.
* Know what is going on, reports, current margins, current limits and more.
*Consider short term options instead of futures and/or MICROS
*Trade smaller. The bands are much larger. Watch the VIX.
* DO NOT assume anything…if you are not sure, contact us and we will try our best to assist with the combined, vast experience we have here as a team.
* Wash hands, take this seriously and do your best to stay healthy….
My colleague, John Thorpe, Ex floor broker, contributed the following on the VIX and the VVIX:
“We recommend all stock indices intraday traders to keep an eye on the VIX for directional clues and study, many of you have access through other means to view this critical trading barometer, VIX now trades 5 days per week ,23 hours per day. if you need to add the VIX data to your trading platforms , it’s 3 bucks per month, penny wise and pound foolish if you don’t. Contact your broker on how to add the Volatility Index traded through the CBOE to your trading platform.”

Futures Trading Levels

01-06-2022

Support & Resistance Levels For 01.06.2022


Economic Reports, Source: 

https://bettertrader.co/ 

BetterTrader Reports 01.06.2022

 

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 when it comes to Futures Trading.

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.

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