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Market Analysis - 04.01.2020

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:

17.80

19.35

19.50 - GEX


Key Resistance Levels:

20.52

21 - GEX

22.39

23.25

25.10


Auction Profile:

Range bound


/CL futures are trading in a narrow range almost below the previous value area. Little directional conviction exists between buyers and sellers with elevated downside risk.

 

S&P 500


Key Support Levels:

2386

2411.25

2450 - GEX


Key Resistance Levels:

2489

2554

2591.75

2600 - GEX

2619

2658.75

2694.25


Auction Profile:

Range bound


/ES futures are trading in a narrow range far below yesterday's value area. Strong support was present Sunday evening around the same area as price action is currently trading. It's more likely price will be lifted from this area, however, value area placement indicates seller conviction is high.

 

NATURAL GAS


Key Support Levels:

1.50 - GEX

1.526

1.565

1.611

1.655


Key Resistance Levels:

1.678

1.7

1.717

1.74

2 - GEX


Auction Profile:

Range bound


/NG futures are currently trading within the lower section of the previous value area with a strong rejection at 1.678. Expect a range day between 1.611 and 1.70.

 

NASDAQ


Key Support Levels:

7169.25

7300 - GEX

7415.50

7500


Key Resistance Levels:

7623

7758

7800 - GEX

7869

8000


Auction Profile:

Range bound


/NQ futures are currently trading far below the previous value area near short term support at 7500. This indicates sellers are in control. We might retest Sunday night's gap down to 7415.50 today. Expect contracts to remain between 7415.50 and 7758.

 

EURO


Key Support Levels:

1.0858

1.0889

1.09355

1.095 - GEX

1.09751


Key Resistance Levels:

1.10699

1.11 - GEX

1.11182

1.11351

1.11757


Auction Profile:

Range bound


/6E futures are trading below previous value area with price strong rejected at 1.10699 during the overnight session. If support holds around 1.09355, expect a return to around 1.10699. Otherwise, expect a drop to the 1.0889 level.

 

BRITISH POUND


Key Support Levels:

1.1895

1.2027

1.2173

1.2239

1.2306

1.235 - GEX

1.2389


Key Resistance Levels:

1.2446

1.245 - GEX

1.2551


Auction Profile:

Range bound


/6B futures are trading slightly below the previous value area in a narrow range showing little conviction from buyers and sellers. Expect today to be similar to yesterday with price staying between 1.2306 and 1.2446.

 

FINAL THOUGHTS


/VX futures remain above 50 as uncertainty continues to cloud the market's future. Gamma has turned slightly negative which should add moderate volatility to price action. DIX increased again, which could be a sign of institutional players getting in on the action early or it could be QE rebalancing. While elevated volatility remains, continue to use lower leverage and a stop loss.

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