Sellers were in control in last session with dPOC skew down on second day of lower value. Low was not secured and expectation was to get that poor low cleared and more downside due to value created on previous session spike.
Failing to scale above 17540 and back below 17500 probe was marked for 17460/17400 then considered quite weak below 17380 for 17240-17220 then 17100-17050 was the probe downside. NF opened gap down and move higher could not scale 17540 above POC zone of balanced session and gone for clearing all downside obj marked above till 17125 then closed at lower distribution.
Pointers from the day :
Sellers were quite keen today with large selling tail and triple distribution trend day down. Profile of triple disbn day is a sign that ST excess from 17810 more or less done the job..Committed inventory of short term usually finishes job with such emotional profiles ie. triple distribution day. Confirmation now comes for this if we start clearing extn singles and handles of the day which could confirm supply is done the job and easing off.
NF left a buying tail today around major support zone marked for the week/month (17050-17100 zone).Now, failing to do so as mentioned above and accepting in buying tail of the day below 17150 could call for next round of liquidation down move.
Balanced profile of last session expected to deliver imbalance session and it has happened today.
NF after started accepting budget day value on Friday + with observation of no sign of buying emerging, expected to clear that day's double print tail zone fully till 17250 which is done today.
Now, focus for next session is if they respect extn singles and handles and go for another liquidation move or will allow balance in today triple disbn profile for mean reversion move back upside.
To track that hypos are, failing to scale below 17150 and back above 17200 could test 17245-17260 and bullish above 17270 for 17305/17340-17360/17390. Quite bullish above 17395 for 17430/17465-17475/17510-17530 if sustains then 17580/17620 possible.
Failing to stay above 17260 could drop to 17210 and below 17210 could test 17170-171750. Weak below 17150 for 17110/17080/17040 and quite weak below 17030 for 17005-16990/16965 if sustains then 16910-16895/16865/16830-16820 possible.
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.
Comentários