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Market Analysis - 04.02.2020

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

20 - GEX

20.52

22.39


Key Resistance Levels:

23 - GEX

23.25

25.10


Auction Profile:

Range bound


/CL futures rose greater than 10% overnight as China announced it would make strategic purchases to increase the nation's oil reserves. As the contracts are trading far above the previous value area, buyers are currently running the show. Note the strong resistance at 22.39, as the futures have been holding that price for the last few hours. With a low volume node directly beneath the contracts, expect them to rise at least to 23.25 today, barring any negative news catalysts.

 

S&P 500


Key Support Levels:

2386

2400 - GEX

2411.25

2445

2489


Key Resistance Levels:

2554

2591.75

2600 - GEX

2619

2658.75

2694.25


Auction Profile:

Range bound


/ES futures found support in the same area as the gap down from Sunday's evening session. The contracts area now trading within the upper bounds of the previous value area in a narrow range. There is a low volume area directly above current price which will put downward pressure on /ES. Buyers and sellers have little conviction at this point. The most likely scenario is that price action rotates between 2445 and 2500.

 

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

2 - GEX


Auction Profile:

Down auction


/NG futures are currently trading in a narrow range within the previous value area. Price action is likely to oscillate between 1.58 and 1.611.

 

NASDAQ


Key Support Levels:

7169.25

7200 - GEX

7415.50

7500


Key Resistance Levels:

7623

7750 - GEX

7758

7869

8000


Auction Profile:

Range bound


/NQ futures are trading in a narrow range in the center of the previous value area. This indicates very little conviction from buyers and sellers. A range day between 7415.50 and 7700 is the most likely scenario.

 

EURO


Key Support Levels:

1.085 - GEX

1.0858

1.0889


Key Resistance Levels:

1.09355

1.09751

1.105 - GEX

1.10699

1.11182

1.11351


Auction Profile:

Range bound


/6E futures are trading within yesterday's value area showing temporary balance between buyers and sellers. Downside risk is elevated, but support remains below 1.09355 as it's a low volume node.

 

BRITISH POUND


Key Support Levels:

1.1895

1.2027

1.2173

1.2239

1.2306

1.2389

1.24 - GEX


Key Resistance Levels:

1.2446

1.245 - GEX

1.2551


Auction Profile:

Range bound


/6B futures are trading within 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 1.25.

 

FINAL THOUGHTS


/VX futures has fallen below 50 as volatility has declined slightly over the past week. Gamma remains negative which should add increased volatility to price action. DIX increased again, which is most likely a sign of institutional players placing their bets early before the bottom. While elevated volatility remains, continue to use lower leverage and a stop loss.

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