Market Analysis - 03.04.2020

We provide key support and resistance levels for the following futures products daily:

Crude Oil (/CL)

S&P 500 (/ES)

NASDAQ (/NQ)

Natural Gas (/NG)

Euro (/6E)

British Pound (/6B)

 

CRUDE OIL


Key Support Levels:

45 - GEX

46

47


Key Resistance Levels:

48.35

49.21

50 - GEX

50.56


Auction Profile:

Range bound


/CL futures are currently auctioning in a narrow balance range within previous value. This indicates that markets have currently found value and that the most likely scenario is a normal, normal variation or neutral day. This means that price is likely to auction between two reference points (47-48.35) today. This could change barring any breaking #coronavirus news or other catalyst.

 

S&P 500


Key Support Levels:

2958.50

3000 - GEX

3026.25


Key Resistance Levels:

3069.75

3100 - GEX

3100.75

3116.50


Auction Profile:

Range bound


/ES is trading within the lower half of the previous value area. This shows little conviction from buyers and sellers and generally accepted value around the point of control. A range day is the most likely outcome for today barring any news catalysts, with downside risk coming from the weak close and location of today's value area relative to the previous one.

 

NATURAL GAS


Key Support Levels:

1.655

1.7

1.74

1.75 - GEX

1.778


Key Resistance Levels:

1.802

1.841

1.884

1.918

2 - GEX


Auction Profile:

Up auction


/NG futures are trading within previous value area in a narrow range similar to /CL. This indicates agreement between buyers and sellers on accepted value. This could be some consolidation before a move higher, as the fairest value for the past two weeks is still above current price at 1.841.

 

NASDAQ


Key Support Levels:

8611

8700 - GEX

8731.75


Key Resistance Levels:

8837.50

8800 - GEX

8905.75

9014

9122.25


Auction Profile:

Range bound


/NQ is trading within the lower half of the previous value area, similar to /ES. The weak close and the narrow trading range indicate downward pressure as well as acceptance around current value. Chances are trading will remain between 8611 and 8837.50 with possible downside risk.

 

EURO


Key Support Levels:

1.1027

1.105 - GEX

1.10699

1.10849

1.11182

1.1133


Key Resistance Levels:

1.115 - GEX

1.11577

1.11757

1.12


Auction Profile:

Range bound


/6E futures remain in consolidation with price within the upper range of the previous value area. This forecasts another range bound day with potential upside risk. Watch for any strong range extensions to the upside as indications of a possible breakout. However, the more likely scenario is price auctioning between 1.1133 and 1.12.

 

BRITISH POUND


Key Support Levels:

1.27

1.2763

1.2785

1.28 - GEX


Key Resistance Levels:

1.2841

1.2865

1.2882

1.2897

1.2917

1.2938

1.2972

1.305 - GEX


Auction Profile:

Range bound


/6B futures are once again within the previous value area. Lack of conviction remains in the British pound as price rotates around accepted value. This continues to facilitate auctioning between 1.2763 and 1.2841, barring any strong news catalysts.

 

FINAL THOUGHTS


Volatility remains elevated as even an emergency rate cut by the Federal Reserve proved useless in calming markets. Once we have more certainty regarding the spread of the #coronavirus, the volatility will decrease. Until then, continue to expect large swings in asset prices.

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