In This Issue
1. Big and Potentially Bearish Pennant Pattern in June Crude Oil Futures
2. Free Consultation: Custom Educational Program
3. Economic Calendar
by Jim Wyckoff
June crude oil futures on the New York Mercantile Exchange last week saw a steep price decline of more than $10.00 a barrel. Serious near-term technical damage has been inflicted to suggest that a market top is in place in crude oil. Price action in June crude oil this week has been less volatile and more consolidative in nature. This pause after the recent high volatility has created a potentially bearish pennant pattern on the daily bar chart. A drop in prices below solid chart support at last week's low of $74.51 would produce more chart damage and would also suggest prices are seeing a downside "breakout" from the bearish pennant pattern on the daily chart. If a bearish downside price breakout from the pennant pattern does occur in nearby crude oil futures, the downside price objective, based upon measuring implications from the pennant pattern, would be the $61.00 area. A close in June crude oil above technical resistance at this week's high of $78.51 would begin to provide the bulls with some fresh upside near-term technical momentum.
Jim has an excellent daily newsletter where he reviews different markets, alerts you for potential trades and much more. Included is his great bi-weekly newsletter with charts and a little longer term outlook. We recommend checking out his website, educational CDROM, and services at Jim Wyckoff
As a trader, you should always be asking yourself, "What are my trading goals and how can I gain more knowledge and experience to achieve them?"
At Cannon Trading, our experienced Series 3 futures brokers are here to help reach those goals by developing a custom educational program based on your specific needs.
We are proud to offer several different study materials on trading psychology, money management, trade management, technical indicators, trend following models, countertrend models, basic and advanced options trading, introductory guides to the futures market, and much much more. Take advantage of this offer and see what a custom educational program may do for your trading.
Discuss your goals, experience, and trading needs with one of our senior futures brokers and they will develop a custom educational experience for you. Simply register below for your free consultation by telling us your name, email address, and phone number, and one of our brokers will contact you within one business day to begin working on helping you reach your trading goals.
Cannon Trading respects your privacy and will never give this information to a 3rd party.The material contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results.
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
| 05/13 Thu |
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly 7:30 AM CDT - Export & Import Prices(Apr) 9:30 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply |
LT: May Cocoa(ICE)
|
| 05/14 Fri |
7:30 AM CDT - NOPA Crush
7:30 AM CDT - Retail Sales(Apr) 8:15 AM CDT - Capacity Util & Industrial Prod(Apr) 8:55 AM CDT - Mich Sentiment(May) 9:00 AM CDT - Business Inventories(Mar) |
LT: May Barley(CBT)
May Corn(CBT) May Oats(CBT) May Rough Rice(CBT) May Wheat(CBT) May Soybeans(CBT) May Soymeal(CBT) May Soyoil(CBT) May Lean Hogs(CME) May Lumber(CME) May Eurodollar Options(CME) May Lean Hogs Options(CME) Jun Coffee Options(ICE) |
| 05/17 Mon |
8:00 AM CDT - Net Long-Term TIC Flows(Feb)
|
FN: May Lumber(CME)
LT: Jun Crude LT OPtions(NYM) Jun Sugar 11 Options(NYM) |
| 05/18 Tue |
7:30 AM CDT - Building Permits & Housing Starts(Apr)
7:30 AM CDT - Core PPI & PPI(Apr) 2:00 PM CDT - Milk Production |
LT: May Coffee(ICE)
|
| 05/19 Wed |
7:30 AM CDT - Core CPI & CPI(Apr)
9:30 AM CDT - API & DOE Energy Stats |
LT: May Platinum Options(CMX)
|
| 05/20 Thu |
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly 9:00 AM CDT - Leading Indicators(Apr) 9:00 AM CDT - Philadelphis Fed(May) 9:30 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply |
LT: Jun Crude Lt(NYM)
|
* Please note that the information contained in this letter is intended for clients, prospective clients, and audiences who have a basic understanding, familiarity, and interest in the futures markets.
** The material contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results.
*** 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!