Market Analysis - 05.06.2020
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:
20 - GEX
21.56
21.94
23.02
24
Key Resistance Levels:
25.49
26.75
28 - GEX
Auction Profile:
Up auction
/CL futures are trading slightly above the previous value area with price rejected strongly around 25.49. Contracts having been oscillating between 24 and 25.49 through the overnight session, which shows active interest by both buyers and sellers. Downside risk is elevated.
S&P 500
Key Support Levels:
2699.75
2750.25
2810.50
2846.75
2865 - GEX
Key Resistance Levels:
2883.50
2890 - GEX
2945.75
Auction Profile:
Range bound
/ES futures are trading within the previous value area while showing resistance again today around the 2883.50 level and support in the vicinity of 2846.75. Upside risk remains elevated.
NATURAL GAS
Key Support Levels:
1.75 - GEX
1.831
1.86
1.912
1.971
2.016
Key Resistance Levels:
2.116
2.25 - GEX
Auction Profile:
Range bound
/NG futures are trading below the previous value area in a narrow range. Currently, contracts are showing little conviction from both buyers and sellers. Downside risk is elevated today.
NASDAQ
Key Support Levels:
8374.50
8621.50
8800 - GEX
Key Resistance Levels:
8841.50
8963
9000 - GEX
9155.75
Auction Profile:
Range bound
/NQ futures are trading within the previous value area with rejection coming again today around 9000. Low volume above 9000 may provide some resistance in the near term, but 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 close to 1.0845. Support has come in around 1.08081 currently, but downside risk remains elevated.
BRITISH POUND
Key Support Levels:
1.2132
1.2222
1.2293
1.235 - GEX
1.2361
Key Resistance Levels:
1.245 - GEX
1.2472
1.2544
1.264
Auction Profile:
Range bound
/6B futures are trading far below the previous value area with support coming in around 1.2361. There's a large low volume area between the overnight open and its current price, and this will most likely keep contracts trading lower. Downside risk is elevated.
FINAL THOUGHTS
/VX futures continue to meander back and forth in from the low to high 30s as volatility remains high. Gamma increased ever so slightly again yesterday indicating a small decrease in volatility in /ES price action. DIX dropped for the third consecutive day, illustrating a lack of interest in buying. We continue to recommend keeping smaller contract size and using tighter stops.