NF had a spike move higher yesterday into close and expectation was to have two way auction in spike zone and spike rules were on focus..NF instead of having two way auction gone for trend day down right from open..Below spike low and 11890 it was considered weak for 11830 and NF gone for clearing further down to clear last 5 day auction with close at low.
Pointers from today's auction :
NF negated spike from yesterday.Spike always requires a follow through move to confirm if spike had committed players or caused due to emotional unwinding of positions.With balance or moving further from spike on same direction, its understood that spike got committed inventory..If spike is negated i.e, spike low after upward spike gets negated then spike was caused by emotional inventory. After such negation i.e, negating upward spike, if price moves back to POC which caused spike, then mostly it ends up on imbalance other side as stuck positions in the previous spike goes for liquidation.This is what happened in today's auction below 11820 with that fast move towards 11720/11680 by close.
Its clean trend day so no spike rules.Extension handles/singles/VWAP and POC are ref for next session.
It was almost outside day.Back to back outside day auction with > average volume in NF.Probably, base is being set for larger move which could be confirmed in a day or two..Else, large balance ahead.
NF printed 3IB move despite having > average IB range..Quite stretched inventory and likely to have some cool off immediately.Rotation factor was also at -13 today with elongated profile structure suggests same unless NF goes for another open drive move or gap down. Elongated structure with such RF mostly dont get good follow through on same direction.
Muti distribution trend week of last week and current trending month supports are violated.Weak structure for buyers as of now.Based on how auction deals with today's ref zones could tell us further outcome.
Price wise for tomorrow, 11725-11750 resistance zone for open..Staying below this zone could test 11675 if sustains then 11650/11610 probe possible..11590-11610 next good support zone if gives up then probe towards 11510/11450 possible..
Above 11750 could probe 11780/11810 zone and bullish above 11830 for 11865/11930.
Not accepting below 11680 or above 11810 could end as balanced profile.
Charts and data :
Detailed plan with refs to carry forward, trade hypos and nuances from the day available to members.
Notes :
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