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Market Analysis - 04.09.2020

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


Key Resistance Levels:

26.05

27.45

28.28

29.43

30 - GEX


Auction Profile:

Range bound


/CL futures volatility will continue to be elevated today as a virtual OPEC+ meeting is occurring at 10 AM ET. Price swings from 20 to 40 are possible according to some analysts. If you are trading oil today, be very aware of the current market situation around that time period.

 

S&P 500


Key Support Levels:

2591.75

2619

2658.75

2694.25

2700 - GEX


Key Resistance Levels:

2729.50

2750 - GEX

2782.50

2815

2855


Auction Profile:

Range bound


/ES futures are trading in the upper half of the previous value area. Resistance around 2694.25 has now become support. Upside risk is elevated, with 2694.25 a nice level to go long if it is tested again, barring any negative news catalyst.

 

NATURAL GAS


Key Support Levels:

1.678

1.70

1.717

1.74

1.75 - GEX


Key Resistance Levels:

1.761

1.778

1.802

1.821

1.841

2 - GEX


Auction Profile:

Range bound


/NG futures have fallen sharply since yesterday morning showing sellers are now in control. Contracts are trading below the previous market value in a sign that downside movement may continue. There is strong support between 1.75 and 1.76, and price would need to move strongly below this range to cause continued selling.

 

NASDAQ


Key Support Levels:

7869

8100 - GEX

8078.25


Key Resistance Levels:

8200 - GEX

8168.25

8262

8410


Auction Profile:

Range bound


/NQ futures are trading in a narrow range range in the upper portion of the previous value area. Support remains strong around 8000 with slightly elevated upside risk.

 

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 in a narrow range completely overlapping the previous value area. This indicates almost no conviction from buyers and sellers. Expect contracts to remain between 1.0858 and 1.09355.

 

BRITISH POUND


Key Support Levels:

1.2027

1.2173

1.22 - GEX

1.2239

1.2306


Key Resistance Levels:

1.2389

1.2446

1.2551

1.26 - GEX

1.2636


Auction Profile:

Range bound


/6B futures are trending upward over the past few days, yet strong resistance still exists around 1.2446. Elevated upside risk is present, but a meaningful move above resistance is necessary.

 

FINAL THOUGHTS


Once again, /VX futures are above 40 indicating volatility remains elevated. Gamma continues to rise forecasting increased stickiness to /ES price action. DIX has risen further into the elevated range indicating that institutional investors increased buying activity yesterday. While elevated volatility remains, continue to use lower leverage and a stop loss.

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