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Market Analysis - 05.05.2020

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:

19.35

20 - GEX

20.42

21.01

21.56

21.94


Key Resistance Levels:

23.02

24

25.49

26.75

27 - GEX


Auction Profile:

Up auction


/CL futures are trading far above the previous value area with buyers in control following the overnight session. A lot of volume has been traded around the 23 level, which may slow down the upside move. Upside risk is elevated.

 

S&P 500


Key Support Levels:

2699.75

2750.25

2810.50

2830 - GEX

2846.75


Key Resistance Levels:

2883.50

2900 - GEX

2945.75


Auction Profile:

Range bound


/ES futures are trading above the previous two value areas above resistance around 2846.75. Strong rejection around 2860 was countered by increasing buying pressure during the overnight session. Upside risk is elevated today.

 

NATURAL GAS


Key Support Levels:

1.75 - GEX

1.831

1.86

1.912

1.971

2.016


Key Resistance Levels:

2.116

2.50 - GEX


Auction Profile:

Up auction


/NG futures are trading far above the previous value area and have surged through a longer term low volume area, but are now experiencing resistance. The series of lower highs with strong seller presence seem to indicate buyer strength is waning. Momentum, for the time being, remains with the buyers but expect resistance for any further movement upward.

 

NASDAQ


Key Support Levels:

8374.50

8621.50

8700 - GEX


Key Resistance Levels:

8841.50

8963

9050 - GEX

9155.75


Auction Profile:

Range bound


/NQ futures are trading above the previous value area and above resistance around 8841.50. After a strong rejection overnight around 8900, buyers remains in control. Upside risk is elevated.

 

EURO


Key Support Levels:

1.08 - GEX

1.08081

1.08319


Key Resistance Levels:

1.08726

1.09 - GEX

1.09113

1.09425

1.10041


Auction Profile:

Down auction


/6E futures are trading far below the previous value area again today as price was rejected strongly around 1.09113. Support is now coming in around 1.08319, yet sellers remain in control. There is lots of support around 1.08319 but downside risk remains elevated.

 

BRITISH POUND


Key Support Levels:

1.2132

1.2222

1.2293

1.2361

1.24 - GEX


Key Resistance Levels:

1.2472

1.25 - GEX

1.2544

1.264


Auction Profile:

Range bound


/6B futures are trading above the previous value area with resistance remaining around 1.2472. Strong rejection around that level overnight, however, buyers remain in play. Upside risk is elevated today.

 

FINAL THOUGHTS


/VX futures continue to meander back and forth in from the low to high 30s as volatility remains high. Gamma increased slightly yesterday indicating a small decrease in volatility in /ES price action. DIX dropped a few points, showing institutions decreased their buying following the weekend. We continue to recommend keeping smaller contract size and using tighter stops.

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