NF had a gap down below neutral day VWAP/extn handle and reaction expected was weakness but NF managed to move higher in first session to clear PDH..Later in second session, confirmed FA at top and got extn handle down to print a another neutral day. Failing to sustain above 12965 was expected to get a move till 12790 and NF extended down till 12755 and closed as neutral extreme down day.
NF registered a outside day clearing PDH and then clearing PDL with wide range and good volume. Need to have first session with lower/lower overlap value to get another follow through down day else overlap in today's range could happen to fill the imbalance zone of today.
NF got neutral extreme down day with FA at top. Expectation is to get follow through down after such auction with volume + FA at top. 12860-12880 zone negation for the view.
Price has moved 45 degree away from dPOC as we had clear balance in first session then had quick imbalance down which could not bring down dPOC..So, its important for NF to create clear lower/lower overlap value tomorrow else probe back to today POC zone possible later.
NF resumes to balance here. We have two clear distinct balance as shown in below chart in the current trending month of November..Today we have just tested lower balance and bounced..Another move down to 12765 could probe lower balance till 12720-12670 if sustains then 12600..Any failure to sustain in lower balance and acceptance back above 12820 could make coming days more of volatile two way move as auction, to traverse up and down in this large range of two balance to make it as one large composite..So, we need to first get into lower balance to get follow through of today's auction > then probe entire balance without bouncing back above 12820 for clear moves else lot of chop could happen.
For next session, below 12770 could look for a move towards 12720-12700/12670 if sustains then 12620/12590 possible later.
Failing to sustain below 12770 could go for balance roughly in 12770-12860 zone.
Bullish above 12880 for 12910/12940-12965 if sustains then 13010 possible.
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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