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Market Analysis - 05.11.2020

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

23.02

23.41

24

24.90


Key Resistance Levels:

25 - GEX

25.49

26.75


Auction Profile:

Range bound


/CL futures are trading above the previous value area with strong buying pressure. Upside risk is elevated today.

 

S&P 500


Key Support Levels:

2750.25

2810.50

2846.75

2865 - GEX

2883.50


Key Resistance Levels:

2910 - GEX

2945.75


Auction Profile:

Range bound


/ES futures are trading below the previous value area after being strongly rejected around 2945.75. Support remains around 2883.50 with downside risk elevated today.

 

NATURAL GAS


Key Support Levels:

1.719

1.75 - GEX

1.757

1.831


Key Resistance Levels:

1.86

1.912

1.971

2 - GEX

2.016


Auction Profile:

Down auction


/NG futures are trading within the previous value area in a narrow range. Currently, there is little conviction from buyers and sellers. Watch for a breakout in either direction as an influx of volume enters the market.

 

NASDAQ


Key Support Levels:

8841.50

8963

9000 - GEX

9155.75


Key Resistance Levels:

9240

9300 - GEX


Auction Profile:

Range bound


/NQ futures are trading below the previous value area following strong rejection around 9275. Downside risk is elevated.

 

EURO


Key Support Levels:

1.07 - GEX

1.07659

1.08081


Key Resistance Levels:

1.08319

1.08726

1.09 - GEX

1.09113


Auction Profile:

Range bound


/6E futures are trading below the previous value area and in a tight range just beneath resistance at 1.08319. Watch for a breakout in either direction as volume enters the market.

 

BRITISH POUND


Key Support Levels:

1.2132

1.215 - GEX

1.2222

1.2293


Key Resistance Levels:

1.2361

1.2472

1.2544

1.255 - GEX

1.264


Auction Profile:

Range bound


/6B futures are trading far below the previous value area after strong rejection around 1.242. Contracts have found support at 1.2293, but with heavy volume near the bottom of this move. Even with the support beneath, downside risk remains elevated.

 

FINAL THOUGHTS


/VX futures are still in the 30s as volatility remains elevated. Gamma dropped on Friday, but remains positive as it continues to put the brakes on volatility in /ES price action. DIX dropped as well, illustrating another decrease in institutional buying. We continue to recommend keeping smaller contract size and using tighter stops.

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