Market Analysis - 06.05.2020

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

37.07

37.88


Key Resistance Levels:

40 - GEX


Auction Profile:

Up auction


/CL futures are trading above the previous value area as buyers have entered the market aggressively. One factor affecting price action is the discussion of OPEC+ production cut extensions. Upside risk is elevated today.

 

S&P 500


Key Support Levels:

3013.50

3037

3051.25

3075 - GEX

3090.50


Key Resistance Levels:

3152

3175 - GEX

3180.75


Auction Profile:

Up auction


/ES futures are trading above the previous value area nearing resistance around 3152. Upside risk is elevated, barring any significant news catalyst.

 

NATURAL GAS


Key Support Levels:

1.75 - GEX

1.819

1.84


Key Resistance Levels:

1.896

1.951

2 - GEX


Auction Profile:

Range bound


/NG futures are trading above the previous value area as price has broken through 1.84. Resistance came in around 1.858 a few days ago, so wait for contracts to move past this level before expecting continuation.

 

NASDAQ


Key Support Levels:

9335.50

9416.25

9477.50

9500 - GEX

9600


Key Resistance Levels:

9660

9700 - GEX

9763


Auction Profile:

Range bound


/NQ futures are trading within the lower section of the previous value area after being rejected around the high call gamma strike. As price remains consolidating within this high volume node, we continue to watch for a breakout in either direction accompanied by strong volume before initiating a trade.

 

EURO


Key Support Levels:

1.10959

1.11 - GEX

1.11419

1.11657

1.12297


Key Resistance Levels:

1.13707

1.145 - GEX


Auction Profile:

Up auction


/6E futures are trading above the previous value area after contracts were rejected forcefully around 1.13707 in the past few hours. Downward risk is elevated today.

 

BRITISH POUND


Key Support Levels:

1.245 - GEX

1.2472

1.2516

1.2544


Key Resistance Levels:

1.264

1.27 - GEX


Auction Profile:

Range bound


/6B futures are trading above the previous value area after strong support came in around 1.262. Upside risk remains high, but expect stickiness on the climb upward.

 

FINAL THOUGHTS


/VX futures have fallen further into the mid 20s yet volatility remains high. Gamma exposure fell slightly yesterday showing continued positive gamma. DIX rose sharply yesterday as buyers entered the market strongly. We continue to recommend keeping smaller contract size and using tighter stops.

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