Market Analysis - 03.05.2020

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:

43.76

45 - GEX

46

46.63


Key Resistance Levels:

47

47.86

48 - GEX

48.35

49.21

50.29


Auction Profile:

Range bound


/CL futures are currently auctioning below previous value. Even after OPEC+ announced a production cut of 1.5 million bpd, oil is still moving lower on the day. Auction rotation points to a continued range bound move with higher risk to the downside. Another breach of 46.63 could send these contracts down to at least 46, if not lower, by the end of the trading day.

 

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 upper 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 upside risk coming from the strong 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 the upper half of the previous value area in a narrow range. Rejection continues to occur at 1.841. These contracts seem primed for a move to the upside, if they are able to break through this resistance level. Expect any strong upward movement to carry these futures up to 1.884.

 

NASDAQ


Key Support Levels:

8611

8650 - GEX

8731.75


Key Resistance Levels:

8837.50

8800 - GEX

8905.75

9014

9122.25


Auction Profile:

Range bound


/NQ is trading within the upper half of the previous value area, similar to /ES. The strong close indicate slightly upward pressure as well as acceptance around current value. Chances are trading will remain between 8611 and 8837.50 with possible upside risk.

 

EURO


Key Support Levels:

1.11 - GEX

1.11182

1.1133

1.11577

1.11757


Key Resistance Levels:

1.11957

1.12125

1.1225 - GEX


Auction Profile:

Range bound


/6E futures are continuing to consolidate with strong price action this morning driving price to the top of its current range. Range bound auction is still the most likely scenario, however, in this volatile environment there is definite upside potential.

 

BRITISH POUND


Key Support Levels:

1.27

1.2763

1.2785

1.285 - GEX


Key Resistance Levels:

1.2841

1.2865

1.2882

1.2897

1.2917

1.2938

1.2972

1.3 - GEX


Auction Profile:

Up auction


/6B futures made a strong move upward towards the end of the day and into the over night session. Strong resistance was met near the POC at 1.2938. This signals strong buyer conviction, however, the strong rejection indicates price might not travel much higher. Odds are to the upside, as 1.2897 might make a good long entry point.

 

FINAL THOUGHTS


Volatility continues to be the main theme in the futures markets. Continued concerns regarding the economic impact of the #coronavirus are making participants anxious. Expect this anxiety to remain elevated until more concrete evidence regarding the length of this shock to the global economy comes to light.

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