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Market Analysis - 05.22.2020

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:

28.24

29.18

30.05

31.50 - GEX


Key Resistance Levels:

32.73

33.78

34 - GEX

34.89

36.35

41.05


Auction Profile:

Range bound


/CL futures are trading below the previous value area as contracts fell to 31.50 during the overnight session. As mentioned yesterday, there is strong resistance above 34.88 and we will need sustained, aggressive buying to move past that level. Look for contracts to remain between 31.50 and 34.88, barring any significant news event.

 

S&P 500


Key Support Levels:

2846.75

2883.50

2930 - GEX


Key Resistance Levels:

2945.75

2950 - GEX

2976

3037


Auction Profile:

Range bound


/ES futures are trading within the previous value area after a selloff overnight. Support is came in around 2900, with contracts rebounding to around 2945.75. Price will most likely remain range bound until aggressive buyers or sellers reenter the market.

 

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 in a narrow range within the previous value area after falling moderately overnight. Support held around 1.697 and buyers have begun to come back into the market. Upside risk is elevated today.

 

NASDAQ


Key Support Levels:

9240

9250 - GEX

9335.50


Key Resistance Levels:

9405.50

9400 - GEX

9477.50

9513.50

9660


Auction Profile:

Range bound


/NQ futures are trading below the previous value area after selling off during the overnight session. Buyers are back in action, however, there is a lot of resistance to the upside.

 

EURO


Key Support Levels:

1.08081

1.08319

1.085 - GEX

1.08726


Key Resistance Levels:

1.09113

1.09425

1.10041

1.10285

1.10482

1.105 - GEX


Auction Profile:

Range bound


/6E futures are trading far below the previous value area after strong rejection around 1.10041 yesterday. Buyers have vanished as downside risk is now 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 a continued push lower during the overnight session. Contracts are trading in a narrow range currently, with strong support just beneath at 1.214. Expect bounded price to continue as buyers and sellers continue to battle.

 

FINAL THOUGHTS


/VX futures are back into the 30s as volatility has risen moderately. Gamma dropped significantly which indicates an increase in the volatility of /ES price action. DIX rose sharply as institutional players continue to increase their bullish positions. We continue to recommend keeping smaller contract size and using tighter stops.

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