Trading 201: Day Trading Crude Oil Futures - Support Resistance Levels

Trading 201: Day Trading Crude Oil futures

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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 Friday February 26, 2016

Hello Traders,

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

Greetings!

Trade management is more important than Market Analysis….

Trading 201: Day Trading Crude Oil futures

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

TRADE SMART / TRADE SYSTEMS — for the current rankings as well as actual performance of trading systems traded at Striker, click here.

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 2016 SP500 Nasdaq100 Dow Jones Mini Russell Dollar Index
Resistance 3 1983.08 4313.58 16992 1046.77 98.18
Resistance 2 1965.17 4272.67 16822 1038.13 97.96
Resistance 1 1956.08 4252.08 16736 1033.77 97.67
Pivot 1938.17 4211.17 16566 1025.13 97.45
Support 1 1929.08 4190.58 16480 1020.77 97.16
Support 2 1911.17 4149.67 16310 1012.13 96.94
Support 3 1902.08 4129.08 16224 1007.77 96.65
Contract Apr. Gold March Silver Apr. Crude Oil Mar. Bonds March   Euro
Resistance 3 1269.0 15.65 36.42 169 22/32 1.1124
Resistance 2 1256.7 15.51 34.95 168 26/32 1.1089
Resistance 1 1246.4 15.35 34.00 168 1.1061
Pivot 1234.1 15.21 32.53 167 4/32 1.1026
Support 1 1223.8 15.05 31.58 166 10/32 1.0998
Support 2 1211.5 14.91 30.11 165 14/32 1.0963
Support 3 1201.2 14.75 29.16 164 20/32 1.0935
Contract May Corn May Wheat May Beans May SoyMeal April Nat Gas
Resistance 3 371.2 463.3 882.42 267.63 1.92
Resistance 2 368.8 459.7 878.83 266.57 1.88
Resistance 1 364.7 456.8 872.17 264.63 1.83
Pivot 362.3 453.2 868.58 263.57 1.79
Support 1 358.2 450.3 861.9 261.6 1.7
Support 2 355.8 446.7 858.33 260.57 1.70
Support 3 351.7 443.8 851.67 258.63 1.65
Economic Reports

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

All times are Eastern time Zone (EST)

Date 4:04pm Currency Impact Detail Actual Forecast Previous Graph
FriFeb 26 All Day EUR German Prelim CPI m/m 0.6% -0.8%
2:45am EUR French Consumer Spending m/m 0.6% 0.7%
EUR French Prelim CPI m/m 0.4% -1.0%
3:00am EUR Spanish Flash CPI y/y -0.5% -0.3%
Day 1 ALL G20 Meetings
Tentative EUR Italian 10-y Bond Auction 1.44|1.4
8:30am USD Prelim GDP q/q 0.4% 0.7%
USD Core PCE Price Index m/m 0.1% 0.0%
USD Goods Trade Balance -61.1B -61.5B
USD Personal Spending m/m 0.3% 0.0%
USD Personal Income m/m 0.4% 0.3%
USD Prelim GDP Price Index q/q 0.8% 0.8%
10:00am USD Revised UoM Consumer Sentiment 91.1 90.7
USD Revised UoM Inflation Expectations 2.5%
10:15am USD FOMC Member Powell Speaks
1:30pm USD FOMC Member Brainard Speaks

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   | Futures Trading  

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