Scott Nations Crude Oil Futures Trade

On CNBC's "Futures Outlook," Scott Nations said the rally in crude oil is overdone as the Relative Strength Index reached 76. The front-month crude oil contract is now more expensive than the futures contract for this time next year.

Nations wants to sell crude oil, but he would wait for the commodity to show some weakness. If the March futures contract drops to $56.40, Nations would stop into the short position. He would place a stop loss at $57.40 and he would close the position at $54.70. At these prices, he is risking $1,000 to make $1,700.