NF had a nice balaned profile in previous session and imbalance was probable auction for next session. 15580-15600 was kept as zone to decide the direction of imbalance. NF opened in this band and could not scale higher then started liquidation move via open rejection reverse down.
Probe was for 15550/15525/15500-15490 and NF slowly got till 15502. After having clear lower value balance, it could not sustain lower and ended up higher with spike into close.
Pointers from today’s auction :
NF had a failed auction at low at 31st May large tail zone.
NF printed a neutral extreme up day with spike.
Both above info suggests today’s lower value move was due to long liquidation and lacking enough supply.Buyers took advantage of the same.
NF made a 45 degree move away from well balanced POC..Buyers need to have higher value tomorrow to avoid a probe back to POC zone.
It has spike up close. Spike rules apply for next session. 15588-15632 spike zone.
Stay above spike high = quite bullish
Accept in spike zone with value = Bullish for later session.
Accept below spike low = weakness.
Last couple of sessions was hinting well that NF was going for balance holding below 15650-15700 zone and today’s auction also confirming the same with spike from lower value which is another sign of balance in making. 15500-15700 balance zone as of now and buyers of today’s spike if well committed then should defend 15620-15600 all day tomorrow and then should look for sustaining higher above 15700 to negate balance view..Else, could look for another 1-2 session in this balance range.
For next session, bullish above 15635 for 15660-15680 if sustains 15695 then could get 15720/15745-15760/15785.
Failing to sustain above 15680 could drop to 15630/15590 and weak below 15590 for 15560/15540-15530 and quite weak below 15480 for 15450-15435.
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 via private blog.
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.
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