NF had some poor structure of auction yesterday and also had poor value area..To avoid repair of poor value area, buyers had to push upside NF quicker.We had a gap up and rejected at PDH with open test drive up..Above 12670 probe was for 12710/12750 which happened in IB period..Later NF gone for liquidation by accepting in prev day range..Below 12670 probe was for 12620 then 12580/12540. NF gone for repairing poor value area left in yday profile and probed till POC zone 12580.It could not sustain below and left a tail there and probed IBH/day high again by close leaving neutral auction and closed at highs.
Pointers from the day.
NF printed 8th day of one time frame up.
Neutral extreme auction - Ib extreme both side probed.Two way auction of today suggesting either old buyers made some adjustment and getting ready for next leg or taking bets off and ready to accept a balance. Follow through/failure from this profile could confirm the same tomorrow.
Being a neutral extreme day, POC and VWAP becomes important ref for next session to remain bullish. If we accept below these ref then could look for two way auction again with value overlap day within today's value as NF has left large dent in today's profile due to two way auction with two prominent distribution.
After this neutral day, if buyers wants to get next leg then should go for higher value or higher overlap with today's upper disbn for first session tomorrow.
Holding 12730 looking for a move towards 12795/12830 and quite bullish above 12855 for 12890/12910/12950/12990.
Failure to sustain above 12770 could test 12730 and weak below 12730 for 12690/12660-12640 and quite weak below 12620 for 12580/12540.
Unable to sustain above 12770 or below 12640 could result in nice balance between these zones.
Charts and data :
Detailed plan with refs to carry forward, trade hypos and nuances from the day are available to members.
Notes :
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