Market Analysis - 06.11.2020

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:

35.85

36.35

37 - GEX


Key Resistance Levels:

37.88

38.83

40 - GEX

41.05


Auction Profile:

Range bound


/CL futures are trading far below the previous value area after price was rejected strongly around 37.88. Contracts have fallen to the next high volume node which currently exists between 36.35 and 37. Consolidation is the most likely near term scenario until aggressive buyers or sellers enter the market.

 

S&P 500


Key Support Levels:

3090.50

3100 - GEX


Key Resistance Levels: 3129.50

3152

3190

3200 - GEX

3214.75


Auction Profile:

Range bound


/ES futures are trading far below the previous value area after a drastic fall in price during the overnight session. Fears of a second wave of the coronavirus may be the driving force behind this sharp move lower. Support has been located at the high put gamma strike and price action will likely consolidate on the high volume node between there and 3129.50 in the near term.

 

NATURAL GAS


Key Support Levels:

1.725

1.75 - GEX


Key Resistance Levels:

1.819

1.84

1.86

1.896

1.94

2 - GEX


Auction Profile:

Range bound


/NG futures are trading within the previous value area as price finds balance overnight. The best opportunities exist when price action breaks from this range on higher volume.

 

NASDAQ


Key Support Levels:

9477.50

9600

9660

9763

9900 - GEX


Key Resistance Levels:

9950 - GEX

10016

10078.50

10155.50


Auction Profile:

Range bound


/NQ futures are trading far below the previous value area after a large selloff during the overnight session. Price has found support around the high put gamma strike. A narrow range between the high call gamma and high put gamma strikes indicates a lower volatility expectation for today.

 

EURO


Key Support Levels:

1.12297

1.127

1.13 - GEX

1.1317


Key Resistance Levels:

1.13707

1.145 - GEX


Auction Profile:

Range bound


/6E futures are trading within the previous value area after price was rejected around 1.40 overnight. Range bound activity is likely to continue today, barring any significant news.

 

BRITISH POUND


Key Support Levels:

1.2516

1.2544

1.255 - GEX

1.264


Key Resistance Levels:

1.2732

1.27 - GEX

1.2885

1.3082


Auction Profile:

Up auction


/6B futures are trading far below the previous value area after price fell substantially overnight. Support will likely hold around 1.264 as price action consolidates in the high volume node between there and 1.27.

 

FINAL THOUGHTS


/VX futures have risen back into the 30s as volatility increases. Gamma exposure increased once again yesterday showing extreme positive gamma, which will likely cause stickiness in /ES price action. DIX fell modestly yesterday as dark pool buying remains high. We may be witnessing an end to the euphoria in the next few days as renewed concerns regarding COVID-19 continue to emerge and impact the future earning potential of the global economy. We continue to recommend keeping smaller contract size and using tighter stops.

12 views0 comments

Recent Posts

See All