NF had a long liquidation profile in last session having built value above spike zone of 31st. Acceptance below yday b profile and spike low considered weak, if fails to sustain b profile/spike low then expected mean reversion back to yday profile to repair poor value area. Failing to stay below 17070 expected to bounce back to 17140 and considered bullish above 17140 for 17180/17210. NF gone for this move today via double disbn profile first then came one final extension in last hour above 17210 to push higher till 17260 and then closed at high.
Auction recap of the day :
NF stopped one time frame up of 4 days with open below PDL but later gone above PDH to print a outside day.
Yesterday was long liquidation profile and today was outside day.Signs for balance emerging for few sessions. To continue the up trend, buyers need to stay above this outside day and create value else mean reversion down as balancing activity.
It was triple distribution up trend day with many poor structure as below.
a) second distribution was wider than first distribution and still gone for third disbn towards close..Such structure is emotional or expiry related aiming very short term objective to be met.Rarely gets further acceptance to rally further.
b) volume was on lower side today for such triple distribution elongated move
c) rotational factor of NF at 20 for the day = stretched too long auction.
d) dpoc skew up into close on such elongated profile (possible chances that emoitonal inventory got closed at end of the day which pulled dPOC up).
To negate all above poor structure, NF have to get gap/drive then create value higher or higher overlap with third distribution of the day.Failing to do so could go for repair of today's profile.
Swing longs from 16950 probed second objective 17250 today. Will wait for another session now to draw new long trade. Swing shorts now below 17190 with negation 17300 for 17070/16995.
For next session failing to stay below 17210 and back above 17240 could get 17265 and bullish above 17265 for 17290 if sustains then 17330-17345 probe possible.
Failing to stay above 17280 could drop to 17230-17210 and weak below 17200 for 17160-17150 and below 17145 could get 17120/17080.
Charts and data :
Detailed plan with references to carry forward, actionable trade hypos for next session, any importance nuance from the day and view based on weekly and monthly time frame are available to members in private blog.Above report is only part of it.
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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