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Market Analysis - 03.20.2020

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:

20.52

23 - GEX

25.10


Key Resistance Levels:

26 - GEX

26.05

27.45

28.28


Auction Profile:

Range bound


/CL futures had some strong movement upward yesterday and this morning. However, there was strong rejection multiple times at the 28.28 level. Expect contracts to remain below this level between 25 and 28.28 for the next few hours.

 

S&P 500


Key Support Levels:

2323

2400 - GEX

2411.25


Key Resistance Levels:

2489

2500 - GEX

2554

2591.75


Auction Profile:

Range bound


/ES futures are currently trading within previous value area and current value area is above the previous one. This indicates that buyers are more in control, but resistance is still present. Expect price action to move between 2400 and 2554 today.

 

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:

Range bound


/NG futures are currently trading in a range above the previous value area. A strong move upward overnight suggestion buyers are regaining control. Look for price to fluctuate between 1.611 and 1.717.

 

NASDAQ


Key Support Levels:

6836.75

7169.25

7300 - GEX

7415.50


Key Resistance Levels:

7500 - GEX

7623

7869


Auction Profile:

Range bound


/NQ futures are currently trading above yesterday's value area with strong rejection at 7623. While this up move is bullish, keep an eye on price action for the first hour of RTH. If a strong move in price occurs to the upside, expect continuation to at least 7869, if not higher.

 

EURO


Key Support Levels:

1.07 - GEX

1.07119


Key Resistance Levels:

1.08151

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. Strong seller conviction remains and indicates a likely continued move downward for price.

 

BRITISH POUND


Key Support Levels:

1.15 - GEX

1.1511


Key Resistance Levels:

1.1761

1.1895

1.2027

1.2173

1.2306

1.3 - GEX


Auction Profile:

Range bound


/6B futures are trading above previous value area nears the highs of yesterday. The strong upward movement during the overnight session indicates buyers have entered the market. Expected continued rejection around 1.1895.

 

FINAL THOUGHTS


Final thoughts remain the same as yesterday:

/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.

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