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.