Market Analysis - 03.19.2020
Updated: Mar 23, 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:
20 - GEX
20.52
Key Resistance Levels:
25 - GEX
25.10
26.05
27.45
Auction Profile:
Down auction
/CL futures continues to selloff amid this increased global volatility and the Saudi-Russian oil war. The contracts are currently trading within the previous value area in a narrow range. There was a strong rejection overnight at 20.52 and elevated gamma at 20. This could act as a short term floor for price. However, with the continued volatility and negative sentiment, don't expect those levels to hold for long.
S&P 500
Key Support Levels:
2300 - GEX
2323
Key Resistance Levels:
2400 - GEX
2411.25
2489
2554
2591.75
Auction Profile:
Range bound
/ES futures are currently trading within previous value area and current value area matches the previous one. This indicates that buyers and sellers have reached agreement in the short term. Expect a range day where neither side is in control and price action moves up and down from 2300 to 2400 and back again, barring any news catalysts.
NATURAL GAS
Key Support Levels:
1.50 - GEX
1.611
1.655
Key Resistance Levels:
1.678
1.7
1.717
1.74
1.75 - GEX
1.761
Auction Profile:
Down auction
/NG futures are currently trading in a range to the upper portion of the previous value area. Because of the multiple tests above the previous value area and the multiple rejections, conviction is lacking from both buyers and sellers and a range day looks to be the most likely result. Expect price to remain between 1.565 and 1.678 in the near term.
NASDAQ
Key Support Levels:
6836.75
7000 - GEX
Key Resistance Levels:
7169.25
7300 - GEX
7415.50
7623
7869
Auction Profile:
Range bound
/NQ futures are currently trading in the upper bounds of yesterday's value area. Price action remains range bound with little conviction from either side. Barring any new catalysts, expect price to remain between 6836.75 and 7623.
EURO
Key Support Levels:
1.08 - GEX
1.08151
Key Resistance Levels:
1.0858
1.0889
1.09355
1.09751
1.10 - GEX
Auction Profile:
Down auction
/6E futures are trading in a wide range currently below previous value area and previous day's low. This indicates stronger seller conviction and a likely move downward for price.
BRITISH POUND
Key Support Levels:
1.15 - GEX
1.511
Key Resistance Levels:
1.1761
1.1895
1.2027
1.2173
1.2306
1.25 - GEX
Auction Profile:
Down auction
/6B futures were trading within a narrow range below previous value area. Currently, they have moved above the value area but will most likely meet sellers around 1.1761. Most likely scenario is a continued downward move to levels not seen in recent memory.
FINAL THOUGHTS
/VX futures are still above 80 today, indicating extreme volatility is still shrouding the markets. As mentioned yesterday, it is possible to be profitable in this market. We recommend keeping your position size small and riding the micro trends within different futures instruments. /ES continues to be very profitable, if you can effectively manage your risk. Stop losses are a must in this environment.