NF had a clean long liquidtion day on 12th. Holding below 14360-14380 NF was expected to seek lower further. NF failed to sustian lower below this band to clear PDL in first session and gone for short squeeze later to retest tail zone of 12th and closed at highs.
Auction clues from the day :
NF left a inside day with value overlap. Imbalance towards close has started from dVAL of the day hence likely to get another overlap in last two days range in next session.
Observation earlier after 12th auction was that imbalance zone of 12th Gap+tail retest should face resistance..NF closed on last session testing this tail zone.. To gain further strength it has to create value in 14550-14690-14800 zone and scale higher above 14800. Till holds below 14800 could look for two way auction only.
Focus for next session is to create balance in 14560-14690 tail zone and then 14690-14800 gap zone for bullishness.. Failing to create value or after creating value but resolving downside below 14525 is weakness for mean reversion back into last two days value area till 14365-14300 zone in coming sessions.
Swing wise monthly gave extn handle at 14810 and last two days auction suggesting we could be heading for lower rotation holding beow 14810 with probable double distribution down month. If we move above 14810 this view negates.
For next session above 14590 could test 14640/14680-14720 and quite bullish above 14720 for 14750/14790-14810 if sustains then 14870/14925/14960 probe possible.
Failing to sustain 14680 could drop back to 14640/14600/14565/14525 and weak below 14520 for 14480/14450 and quite weak below 14440 for 14400/14365/14300.
Charts and data :
Detailed plan with references to carry forward, trade hypos for next session, any importance nuance from the day and view based on weekly and monthly time frame are available to members.
Notes :
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