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Market Analysis - 05.01.2020

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:

11.79

13.73

15.37

17 - GEX

17.88

19.35


Key Resistance Levels:

20 - GEX

21.01

21.56

21.94


Auction Profile:

Up auction


/CL futures are trading far above the previous value area. The volatility in these contracts recently will more than likely continue. Today, upside risk is elevated.

 

S&P 500


Key Support Levels:

2800 - GEX

2810.50


Key Resistance Levels:

2846.75

2860 - GEX

2883.50

2945.75


Auction Profile:

Range bound


/ES futures are trading below the previous value area with selling pressure continuing to mount. Downside risk remains elevated today.

 

NATURAL GAS


Key Support Levels:

1.75 - GEX

1.831

1.86

1.912

1.971


Key Resistance Levels:

2 - GEX

2.016


Auction Profile:

Range bound


/NG futures are trading far above the previous value area in a wide range. Strong rejection at 2.016, yet buying activity has continued. Upside risk is elevated.

 

NASDAQ


Key Support Levels:

8374.50

8621.50

8660 - GEX


Key Resistance Levels:

8841.50

8963

9000 - GEX

9155.75


Auction Profile:

Range bound


/NQ futures are trading far below the previous value area. Strong rejection overnight continues into the morning session. Downside risk is elevated today.

 

EURO


Key Support Levels:

1.08081

1.08319

1.09 - GEX


Key Resistance Levels:

1.08726

1.09113

1.09425

1.105 - GEX

1.10041

1.10482


Auction Profile:

Range bound


/6E futures surged upward yesterday and seem to be finding some resistance around 1.10. Buying strength may be wavering. Upside risk is elevated.

 

BRITISH POUND


Key Support Levels:

1.2132

1.2222

1.2293

1.2361

1.24 - GEX


Key Resistance Levels:

1.2472

1.2544

1.264

1.27 - GEX


Auction Profile:

Range bound


/6B futures are trading above the previous value area after strong rejection around 1.264, erasing all of the gains from yesterday afternoon. Strong support exists around 1.2516 and if that level breaks, buying should come in around 1.2472. Downside risk is elevated.

 

FINAL THOUGHTS


/VX futures increased slightly today, remaining elevated. Gamma continued to increase yesterday which indicates decreasing of volatility in /ES price action. DIX also rose higher in value, showing institutions increased their buying again yesterday. We continue to recommend keeping smaller contract size and using tighter stops.

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