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Market Analysis - 04.07.2020

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:

22.39

23.25

24 - GEX

25.10

26.05


Key Resistance Levels:

27.45

28.28

29.43

30 - GEX


Auction Profile:

Range bound


/CL futures are trading within the previous value area indicating little conviction from buyers and sellers. Downward risk is elevated. There is a possible OPEC+ deal on the horizon with a deal including US producers also on the table. The outcome of this meeting will have a large impact on the price of oil in the short term.

 

S&P 500


Key Support Levels:

2591.75

2600 - GEX

2619

2658.75

2694.25


Key Resistance Levels:

2729.50

2782.50

2815

2855

2880 - GEX


Auction Profile:

Up auction


/ES futures had another strong upward move overnight and is currently trading a narrow range at the top of that move. Expect continued upside with strong support below contracts at 2694.25.

 

NATURAL GAS


Key Support Levels:

1.74

1.75 - GEX

1.761

1.778

1.802


Key Resistance Levels:

1.821

1.841

1.85 - GEX

1.884

1.918


Auction Profile:

Up auction


/NG futures had a strong move to the upside yesterday afternoon continuing overnight. Expect contracts to continue to rise, with support coming in around 1.761.

 

NASDAQ


Key Support Levels:

7869

8000 - GEX

8078.25

8168.25


Key Resistance Levels:

8262

8350 - GEX

8410


Auction Profile:

Up auction


/NQ futures are up sharply overnight again and currently trading in a narrow range. Strong long term resistance around 8300. Short term momentum is to the upside and if we break that resistance, the next level of resistance is around 8410.

 

EURO


Key Support Levels:

1.08151

1.085 - GEX

1.0858

1.0889


Key Resistance Levels:

1.09355

1.09751

1.10

1.10699

1.12 - GEX


Auction Profile:

Range bound


/6E futures are trading far above the previous value area and into a low volume node around 1.09355. If the node is breached, expect movement upward to the next resistance level around 1.09751.

 

BRITISH POUND


Key Support Levels:

1.2027

1.2173

1.2239

1.23 - GEX

1.2306


Key Resistance Levels:

1.2389

1.2446

1.2551

1.26 - GEX

1.2636


Auction Profile:

Range bound


/6B futures had a strong bounce off a low overnight open. This shows buyers have entered the market. There is still strong resistance around 1.2446 and that level likely remains in tact for today.

 

FINAL THOUGHTS


/VX futures remain around 40, indicating volatility is still high. Gamma has turned positive forecasting stickiness to /ES price action. DIX has dropped below the elevated range indicating that institutional investors have slowed their buying. While elevated volatility remains, continue to use lower leverage and a stop loss.

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