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.