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Market Analysis - 03.23.2020

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

22.39

23 - GEX


Key Resistance Levels:

25.10

26.05

26.50 - GEX

27.45

28.28


Auction Profile:

Range bound


/CL futures are trading in a narrow range below the previous value area. This shows little conviction from buyers and sellers with elevated downside risk.

 

S&P 500


Key Support Levels:

2250 - GEX

2281


Key Resistance Levels:

2323

2350 - GEX

2411.25

2489

2554

2591.75


Auction Profile:

Range bound


/ES futures just jumped due to economic stimulus promised by the Fed. Once again, this will most likely be a buy the rumor, sell the news event. Expect the market to react negatively once the news if fully absorbed.

 

NATURAL GAS


Key Support Levels:

1.50 - GEX

1.526

1.565


Key Resistance Levels:

1.611

1.655

1.678

1.7

1.717

1.74

1.75 - GEX


Auction Profile:

Range bound


/NG futures gapped lower overnight but met strong support at 1.526. This indicates an excessive move downward as sellers continued to push price lower until there were no sellers left. Expect natural gas contracts to push higher and remain within the range from Friday's session.

 

NASDAQ


Key Support Levels:

6836.75

7169.25

7200 - GEX


Key Resistance Levels:

7400 - GEX

7415.50

7623

7869


Auction Profile:

Range bound


/NQ futures also just surged due to economic stimulus promised by the Fed. As with the S&P futures, this will most likely be a buy the rumor, sell the news event. Expect the market to react negatively once the news if fully absorbed.

 

EURO


Key Support Levels:

1.07119

1.07962

1.08 - GEX

1.08151


Key Resistance Levels:

1.0858

1.0889

1.09355

1.09751

1.10 - GEX


Auction Profile:

Range bound


/6E futures are currently trading above the current and previous value areas in an upward move likely related to US economic stimulus. As with the S&P and NASDAQ futures, expect this strong move to be short-lived as markets digest this information. Expect euro futures to remain range bound between 1.07119 and 1.0858.

 

BRITISH POUND


Key Support Levels:

1.15 - GEX

1.1511


Key Resistance Levels:

1.1761

1.1895

1.2027

1.2173

1.2306

1.32 - GEX


Auction Profile:

Range bound


/6B futures are trading below the previous value area in a slightly narrow range. This is indicative of downward pressure with little buyer or seller conviction. Expect contracts to remain between 1.1511 and 1.1895, with elevated risk to the downside.

 

FINAL THOUGHTS


/VX futures have dropped lower but still remain above 50. Volatility continues to be the name of the game as large price swings occur in both directions, impacted by various economic announcements.


As mentioned previously, 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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