Will Monday’s Bullish Tailwinds Continue?

Research Posts Morning Express

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Actionable ideas to manage risk and tackle markets, covering the E-mini S&P, E-mini NQ, Crude Oil, Gold and Silver.

E-mini S&P (December) / E-mini NQ (December)

S&P, yesterday’s close: Settled at 4241.75, down 6.75

NQ, yesterday’s close: Settled at 14,712.00, up 48.00

E-mini S&P and E-mini NQ futures roared higher after an opening bell shakeout. Mondays of late of have been favorable, and even so despite a directional risk-off Friday. Added tailwinds arrived from the reprieve in Treasury yields as the U.S. 10-year went from an overnight high of 5.02%, the highest since July 2007, to as low as 4.80% into today.

Yesterday’s strength in both indices went right to where our readers should expect, major three-star resistance in the E-mini S&P at 4279.25-4284.75 and rare major four-star resistance in the E-mini NQ at 14,852-14,890. Price action settled back after the achievement and the lower close creates a line in the sand defining a potential bottom. We believe the advantage has shifted to the bulls if the E-mini S&P can hold out above major three-star support at 4235-4241.75, whereas the bears can regain the upper-hand by achieving a close below rare major four-star support at 4200-4213.25.

Bias: Neutral/Bullish

Resistance: 4262.50**, 4279.25-4284.75***, 4294.75*, 4299.50-4303***

Pivot: 4248.50-4255.50

Support: 4235.75-4241.75***, 4228.75**, 4200-4213.25****, 4178-4185**, 4126-4145.25****

NQ (Dec)

Resistance: 14,800-14,810**, 14,852-14,890****, 14,925-14,949***

Pivot: 14,740

Support: 14,699-14,712***, 14,634-14,664***, 14,514-14,586***, 14,332-14,385****, 14,294***, 13,968-14,000****

Crude Oil (December)

Yesterday’s close: Settled at 85.49, down 2.59

Crude Oil futures have erased the pre-weekend Thursday-Friday ramp and are settling in at a critical area from $85 to $86. While specific supports are defined by the levels below, this is a notable pocket where a rally began as the November contract fell off the board last Tuesday. Price action is retesting this area for the second time since rallying from a low of 85.44 early Thursday morning. It will be critical for the bulls to defend this range as geopolitical premium is removed coming out of the weekend and U.S. inventories begin hitting the picture today and tomorrow.

Bias: Neutral/Bullish

Resistance: 86.16-86.28**, 86.77-86.90**, 87.53***, 88.02-88.23**, 88.57-88.71***, 89.54-89.85***

Pivot: 85.35-85.65***

Support: 85.02***, 84.20-84.39***, 83.75-83.88***, 81.28-81.80****

Gold (December) / Silver (December)

Gold, yesterday’s close: Settled at 1987.8, down 6.6

Silver, yesterday’s close: Settled at 23.21, down 0.294

Gold and Silver are on their backfoot after retreating from last Friday’s ramp that achieved a critical area of resistance at 2009.2-2012.7 and 23.80-23.88, respectively. As the situation in the Middle East evolves and communication continues, there has been a removal of some geopolitical premium in precious metals, for the time being. For instance, the gap lower Sunday night, and the reversal from overnight highs early this morning. It is also notable that Gold and Silver were unable to capitalize on Treasury strength and U.S. Dollar weakness yesterday. Today, we are seeing a bit of unwind in such moves and that is bringing a headwind to the precious metals camp. At the end of the day, Gold and Silver were due to consolidate, but what matters is whether they can build a floor out above critical areas of support and remain constructive at and above our levels detailed below.

Bias: Neutral/Bullish

Resistance: 1981.3**, 1987.8-1990.3***, 1994.4-1997.6***, 2009.2-2012.7****

Pivot: 1871-1876.6

Support: 1863.8-1865.1***, 1946.2-1950.6*** 1935.7-1938.3****

Silver (December)

Resistance: 23.18**, 23.34-23.36**, 23.46-23.51***, 23.80-23.88****

Pivot: 22.99-23.03

Support: 23.89-23.94**, ,2.72-22.84****, 22.45-22.54***


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Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500


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