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Market Analysis - 05.21.2020

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:

30.05

31.50

32 - GEX

32.73

33.78


Key Resistance Levels:

34.89

35 - GEX

36.35

41.05


Auction Profile:

Up auction


/CL futures are trading in a narrow range above the previous value area as contracts pushed past resistance around 33.78 overnight. Price is currently consolidating as buyers and sellers agree on a fair price, for the time being. Upside risk remains elevated, but contracts are nearing the gap from early March where price fell substantially. Expect the road upward to get harder as we get closer to the 34.88 - 36.35 region.

 

S&P 500


Key Support Levels:

2846.75

2883.50

2900 - GEX

2945.75


Key Resistance Levels:

2976

3000 - GEX

3037


Auction Profile:

Range bound


/ES futures are trading below the previous value area after being rejected around 2976 yesterday afternoon. Support is currently holding around 2945.75, with contracts still in consolidation mode. Upside risk remains elevated, however, 3037 is another low volume node that we should keep our eyes on.

 

NATURAL GAS


Key Support Levels:

1.564

1.613

1.697

1.70 - GEX

1.719


Key Resistance Levels:

1.75 - GEX

1.757

1.831

1.86

1.912


Auction Profile:

Range bound


/NG futures are trading far below the previous value area after probing above resistance at 1.86 yesterday afternoon and being swiftly rejected. Support is currently holding around 1.719, but downward pressure is mounting.

 

NASDAQ


Key Support Levels:

9240

9335.50

9400 - GEX

9405.50


Key Resistance Levels:

9450 - GEX

9477.50

9513.50

9660


Auction Profile:

Up auction


/NQ futures are trading within the previous value area in a narrow range after rising above resistance yesterday. Upside risk is elevated, however, sellers are beginning to enter the market in force.

 

EURO


Key Support Levels:

1.09113

1.09425

1.10 - GEX

1.10041


Key Resistance Levels:

1.10285

1.10482

1.105 - GEX


Auction Profile:

Up auction


/6E futures are trading above the previous value area after successfully battling resistance around 1.10041. These strong moves that continue to drive price upward show that buyers are currently in control. Upside risk is elevated.

 

BRITISH POUND


Key Support Levels:

1.2132

1.215 - GEX

1.2222


Key Resistance Levels:

1.2293

1.2361

1.24 - GEX

1.2472

1.2544


Auction Profile:

Range bound


/6B futures are trading below the previous value area after falling below support and recently consolidating slightly above it around 1.2222. Resistance has held firmly around 1.2293 as price action remains range bound. All indications point to price remaining between 1.214 and 1.2293 today.

 

FINAL THOUGHTS


/VX futures remain in the high 20s. Gamma almost doubled yesterday forecasting increase stickiness to /ES price action. DIX fell moderately as institutional players continuing their buying. We continue to recommend keeping smaller contract size and using tighter stops.

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