Market Analysis - 06.03.2020

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:

33.16

33.78

34.88

35 - GEX

36.35


Key Resistance Levels:

37 - GEX

37.88


Auction Profile:

Up auction


/CL futures are trading within the previous value area again today after getting rejected strongly around 38.18 overnight. As mentioned previously, we are now inside of the gap down from March and we are working to fill it to the upside. We have EIA inventories today and speculation regarding OPEC+ production cut extensions continue to weigh on the minds of traders. Upside risk remains today, but expect elevated volatility as well.

 

S&P 500


Key Support Levels:

3013.50

3037

3051.25

3075 - GEX

3090.50


Key Resistance Levels:

3120 - GEX


Auction Profile:

Up auction


/ES futures are trading above the previous value area in a narrow range that continues to oscillate around 3090.50. Upside risk remains elevated.

 

NATURAL GAS


Key Support Levels:

1.75 - GEX


Key Resistance Levels:

1.819

1.84

1.896

1.951

2 - GEX


Auction Profile:

Range bound


/NG futures are trading above the previous value area with rejection coming in around 1.819. This surge in the past few hours was the breakout we were anticipating. In order to continue, buyers need to step in aggressively as price nears 1.819.

 

NASDAQ


Key Support Levels:

9335.50

9416.25

9477.50

9500 - GEX

9600

9660


Key Resistance Levels:

9763

9800 - GEX


Auction Profile:

Up auction


/NQ futures are trading above the previous value area in a tight range just above 9660, which has now become support. Watch for a breakout in either direction accompanied by strong volume before initiating a trade.

 

EURO


Key Support Levels:

1.10285

1.10699

1.10959

1.1125 - GEX

1.11419


Key Resistance Levels:

1.125 - GEX


Auction Profile:

Up auction


/6E futures are trading just above the previous value area after price was rejected around 1.123 during the overnight session. Upward risk remains elevated today.

 

BRITISH POUND


Key Support Levels:

1.2165

1.2222

1.2247

1.255 - GEX

1.2364


Key Resistance Levels:

1.2472

1.2516

1.265 - GEX

1.264


Auction Profile:

Up auction


/6B futures are trading slightly above the previous value area in a choppy range around just above the high put gamma strike. Little conviction remains from buyers or sellers as price moves wildly back and forth. Downside risk is elevated today, with strong support just below current price.

 

FINAL THOUGHTS


/VX futures have fallen into the upper 20s again as volatility remains high. Gamma exposure rose modestly again yesterday showing continued positive gamma. DIX moved slightly upward as dark pool buying activity remains positive. We continue to recommend keeping smaller contract size and using tighter stops.

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