Market Analysis - 03.09.2020

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:

26.05

29.43

31.50 - GEX


Key Resistance Levels:

32.10

35.21

38.02

40 - GEX


Auction Profile:

Down auction


/CL futures are down over 20% due to the collapse of the OPEC+ partnership between the Saudi Arabia and Russia. The Russians want the American shale industry to start feeling the pain of lower prices, so they refused to cut production, and the Saudis want the Russians to feel the same. As Saudi Arabia slashed prices across its outputs, so too did prices fall worldwide. Volatility will remain extremely high for the foreseeable future.

 

S&P 500


Key Support Levels:

2750 - GEX

2800

2815


Key Resistance Levels:

2855

2881.75

2900 - GEX

2925

2958.50


Auction Profile:

Down auction


/ES futures fell due to the crash in oil prices. Volatility continues to remain elevated and weighing heavily on indices. /ES futures have been halted at 2819. Look for further downside once these contracts resume trading.

 

NATURAL GAS


Key Support Levels:

1.50 - GEX

1.611


Key Resistance Levels:

1.655

1.7

1.717

1.74

1.75 - GEX

1.778

1.802


Auction Profile:

Down auction


/NG futures gapped lower during the overnight session following the fall in oil prices. Downside risk is elevated with a short term resistance likely near 1.50.

 

NASDAQ


Key Support Levels:

8000

8040 - GEX


Key Resistance Levels:

8168.25

8200 - GEX

8262

8436.50


Auction Profile:

Down auction


/NQ futures are currently halted at 8093.25. Expect further downside pressure when trading resumes as volatility remains elevated.

 

EURO


Key Support Levels:

1.12 - GEX

1.12125

1.12635

1.1293

1.1344

1.13704


Key Resistance Levels:

1.143

1.15

1.156

1.16 - GEX


Auction Profile:

Up auction


/6E futures once again moved higher during the overnight session as they continue to improve from negative news. Expect a continued move to the upside throughout the day.

 

BRITISH POUND


Key Support Levels:

1.29 - GEX

1.3044

1.3053

1.3073

1.3097


Key Resistance Levels:

1.3129

1.3155

1.3198

1.32 - GEX


Auction Profile:

Up auction


/6B futures gapped up overnight with a strong upside move. However, there was a strong rejection at 1.32 where gamma exposure remains elevated. With such a strong rejection, expect another downward push if the British pound futures reach that level again today.

 

FINAL THOUGHTS


Volatility, volatility, volatility. I know I sound like a broken record, however, this is the highest volatility we have seen since the Great Financial Crisis in 2008-2009. If you have the stomach for it, scalping can be very profitable these days as large price swings occur frequently. If, on the other hand, swing trading is more your style, wait for option volume spikes and enter in the direction of strong price action. Keep your positions small, as you don't need to be at max leverage to see outsized profits these days.

10 views0 comments

Recent Posts

See All