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Market Analysis - 04.22.2020

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:

6.73

10 - GEX


Key Resistance Levels:

11.79

12.50 - GEX

15.37

19.35

21.01


Auction Profile:

Down auction


/CL futures are trading in a narrow range towards the lower section of the previous value area. This looks to be consolidation before another down move. Downside risk and volatility in the contract remain elevated. EIA inventories are at 10:30 AM ET and are likely to momentarily increase volatility beyond what exists already in the market.


As we mentioned on Twitter yesterday, we wouldn't be surprised if this contract ends up in negative territory sometime before it expires next month. The CME group is already prepared by introducing negative strike options today. This has never been done before and the group had to change their option pricing methodology to account for negative prices. This will most likely be a self-fulfilling prophecy that causes oil prices to plunge further.

S&P 500


Key Support Levels:

2699.75

2750 - GEX

2750.25


Key Resistance Levels:

2800 - GEX

2810.50

2846.75

2883.50


Auction Profile:

Range bound


/ES futures are trading slightly above the previous value area currently. While this indicates buyers entering the market, strong resistance exists at 2810.50 and overall trend is negative. Downside risk remains elevated today.

NATURAL GAS


Key Support Levels:

1.75 - GEX

1.564

1.613

1.697


Key Resistance Levels:

1.719

2.00 - GEX

1.757

1.81

1.831

1.86


Auction Profile:

Down auction