After 7IB down day auction yesterday, expectation was for all day balance. Open inside 13400-13200 was expected to have two way wild swing for the day.NF gone for this move in first session. 13440 was ref for bullishness which was rejected at open and and NF had a balance between 13360-13230 in first session. Later failed to sustain below 13230 IBL had a sharp bounce from long liquidation profile to print a neutral day moving above IBH, which confirmed FA at low and closed at day high.
Pointers from the auction today :
NF held the large tail left at low yesterday at 13220 and printed FA at low in that zone. This FA had extension above 13365 which lead to neutral extreme close. This 13365 zone is now good support. This FA at low caused neutral day which needs to hold 13365 going forward to fill back the 7IB down day profile from yesterday moving higher to remain bullish.
NF partially accepted extension singles from yesterday. Sustaining further in those extension singles could call for filling entire single prints till 13575/13640.
It was long liquidation profile and then turned into neutral profile. Its important to hold 13440-13450 zone early in session after such profile to look for further move higher. Acceptance below 13440 could look for testing/filling value area.
Price wise, holding 13440-13450 zone could look for test of 13490 and bullish above 13490 for 13530/13575 if sustains then 13640/13680/13740 probe possible later.
Failing to sustain above 13490 could test 13450-13440 and weak below 13440 for 13390/13360 and quite weak below 13360 for 13310-13280/13240.
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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