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Market Analysis - 05.29.2020

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

32.27

32.50 - GEX


Key Resistance Levels:

33.16

33.78

34.88

35 - GEX

36.35


Auction Profile:

Range bound


/CL futures are trading within the previous value area as contracts continue to consolidate between 31.50 and 35. 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

3013.50

3030 - GEX


Key Resistance Levels:

3037

3060 - GEX


Auction Profile:

Range bound


/ES futures are trading below the previous value area in a range between 3013.50 and 3037. Remain patient and watch for a breakout from one of these levels, as followthrough from aggressive buyers or sellers will move price rapidly.

 

NATURAL GAS


Key Support Levels:

1.75 - GEX

1.84


Key Resistance Levels:

1.896

1.951

2 - GEX

2.013

2.064


Auction Profile:

Down auction


/NG futures are trading within the previous value area in a wide range. Contracts were supported strongly around 1.804 overnight. Since then, price was rejected forcefully around 1.865. Range bound activity may very well continue throughout the day, but downside risk is elevated.

 

NASDAQ


Key Support Levels:

9240

9335.50

9350 - GEX

9405.50


Key Resistance Levels:

9477.50

9513.50

9600 - GEX

9660


Auction Profile:

Range bound


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

 

EURO


Key Support Levels:

1.10041

1.10285

1.105 - GEX

1.10959


Key Resistance Levels:

1.115 - GEX

1.11954


Auction Profile:

Range bound


/6E futures are trading above the previous value area after price has continued skyward through the overnight session. We are nearing the high call gamma strike at 1.115, so upside movement may slow once contracts surpass this area.

 

BRITISH POUND


Key Support Levels:

1.2132

1.2222

1.23 - GEX

1.2293


Key Resistance Levels:

1.2361

1.24 - GEX

1.2472

1.2544


Auction Profile:

Range bound


/6B futures are trading above the previous value area as price was supported strongly around 1.23 overnight. Upside risk is elevated, yet limited as the next resistance level is just above current price at our high call gamma strike of 1.24.

 

FINAL THOUGHTS


/VX futures are back in the 30s as volatility increases following US-China trade tensions. Gamma exposure rose marginally yesterday showing continued positive gamma. DIX rose slightly again yesterday indicating dark pool buying activity has increased. We continue to recommend keeping smaller contract size and using tighter stops.

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