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Market Analysis - 05.27.2020

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 - GEX

30.05

32.73

33.78


Key Resistance Levels:

34.88

35 - GEX

36.35

41.05


Auction Profile:

Range bound


/CL futures are trading within the previous value area as contracts consolidate around 34. Watch for a breakout to either side when aggressive participants enter the market.

 

S&P 500


Key Support Levels:

2846.75

2883.50

2945.75

2976

2985 - GEX


Key Resistance Levels:

3030 - GEX

3037


Auction Profile:

Up auction


/ES futures are trading above the previous value area again today as buyers drove up the price overnight. Upside risk remains elevated, but price will need a substantial push to get through the 3037 level.

 

NATURAL GAS


Key Support Levels:

1.75 - GEX

1.84

1.951


Key Resistance Levels:

2 - GEX

2.013

2.064

2.121


Auction Profile:

Range bound


The active /NG futures have changed to the July contracts, and as such we have made adjustments to our charts. These futures are trading above the previous value area in a narrow range. Strong resistance exists around 2.013. Wait for a breakout in either direction as buyers or sellers enter the market aggressively.

 

NASDAQ


Key Support Levels:

9335.50

9400 - GEX

9405.50


Key Resistance Levels:

9477.50

9513.50

9500 - GEX

9660


Auction Profile:

Range bound


/NQ futures are trading within the previous value area after strong rejection during yesterday's session and more downward movement overnight. Contracts will remain range bound until significant buying or selling enters the market.

 

EURO


Key Support Levels:

1.08081

1.08319

1.08726

1.09113

1.09425

1.10 - GEX


Key Resistance Levels:

1.10041

1.10285

1.10482

1.105 - GEX


Auction Profile:

Range bound


/6E futures are trading above the previous value area after price was rejected forcefully around 1.10285. Upside risk remains elevated, with resistance coming in again at 1.10285.

 

BRITISH POUND


Key Support Levels:

1.2132

1.2222

1.225 - GEX

1.2293


Key Resistance Levels:

1.2361

1.24 - GEX

1.2472

1.2544


Auction Profile:

Range bound


/6B futures are trading below the previous value area as price was rejected around 1.2355. That strong rejection, coupled with the downward progression of volume from yesterday afternoon to current, indicates continued selling pressure. Downside risk is elevated.

 

FINAL THOUGHTS


/VX futures remain in the upper 20s as volatility stays on the minds of traders. Gamma exposure rose marginally yesterday showing continued positive gamma. DIX fell sharply yesterday indicating dark pool buying activity has diminished. We continue to recommend keeping smaller contract size and using tighter stops.

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