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Market Analysis - 05.08.2020

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:

21.56

21.94

22.54

23 - GEX

23.02

23.41


Key Resistance Levels:

24

25.49

25.50 - GEX

26.75


Auction Profile:

Range bound


/CL futures are trading below the previous value area. Contracts look to be oscillating back and forth between 23 to 25. Expect this range bound activity to continue today.

 

S&P 500


Key Support Levels:

2699.75

2750.25

2810.50

2846.75

2880 - GEX

2883.50


Key Resistance Levels:

2910 - GEX

2945.75


Auction Profile:

Up auction


/ES futures are trading far above the previous value area while currently consolidating in a narrow range around 2910. Strong resistance remains around 2945.75 with upside risk elevated today.

 

NATURAL GAS


Key Support Levels:

1.75 - GEX

1.831

1.86


Key Resistance Levels:

1.912

1.971

2 - GEX

2.016

2.116


Auction Profile:

Down auction


/NG futures are trading below the previous value area near strong support at 1.86. Downside risk is elevated today.

 

NASDAQ


Key Support Levels:

8841.50

8963

9000 - GEX

9155.75


Key Resistance Levels:

9240

9250 - GEX


Auction Profile:

Up auction


/NQ futures are trading above the previous value area in a narrow range currently. Upside risk remains elevated today.

 

EURO


Key Support Levels:

1.08 - GEX

1.07659

1.08081

1.08319


Key Resistance Levels:

1.08726

1.09 - GEX

1.09113


Auction Profile:

Range bound


/6E futures are trading above the previous value area with a recent bounce off of support at 1.08319. Upside risk is elevated.

 

BRITISH POUND


Key Support Levels:

1.2132

1.2222

1.2293

1.235 - GEX

1.2361


Key Resistance Levels:

1.24 - GEX

1.2472

1.2544

1.264


Auction Profile:

Range bound


/6B futures are trading slightly above the previous value area in a narrow range, indicating little conviction from buyers or sellers. With a low volume area to the upside, downside risk remains elevated.

 

FINAL THOUGHTS


/VX futures are still in the 30s as volatility remains elevated. Gamma increased significantly yesterday increasing its pressure on volatility in /ES price action. DIX dropped slightly yesterday, illustrating a small decrease in institutional buying. We continue to recommend keeping smaller contract size and using tighter stops.

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