NF had a poor high at close yesterday..Our observation was that immediate reaction after such poor high is for small liquidation to remove weak longs then later go for repairing poor high. Expected this scenario if we have inside range open today.We had a inside range open and tested below VAL quick then gone to clear poor high zone at 11895.
We had ledge zone at 11840 and NF could not sustain below this and bounced from here right at open.Above 11895 expected a probe of 11930-11950.After probing this via one time frame up, NF turned into short covering P profile in entire second session.
Pointers from today's auction :
NF left a large buying tail and closed as short covering profile.Fresh leg if opens and accepts above this profile else could go for rotation in this profile as it has left poor value area today.
NF probed naked POC at 11930 which is our second confirmation zone to look for balance by completely negating 15th Oct sell off..This has happened today..So, we have more evidence now for balance to take place.
NF had trend day in first session then negated the same to turn into P profile but still buyers in control by closing around dPOC and saving the tail at lows.Its their job now to start accepting above this P value else we could look for liquidation from them.
As we have accepted naked POC at 11930 zone, next probe is towards negation selling tail at top till 12010 zone if buyers gets follow through from this profile.
Price wise, need a gap or drive above 11930-11940 zone to get 11980/12010/12050..
Failing to do so, could get balance in 11940-11880 zone roughly.
Weak below 11880 for test of 11850-11830 and quite weak below 11830 for 11800/11765.
Charts and data :
Detailed plan with refs to carry forward, trade hypos and nuances from the day are available to members.
Notes :
a) Check glossary page in website if any of the terms used in the post are not clear.
b) If images are not clear, click on them for enlarged view.
Opmerkingen