NF had a poor low in last session and observation was that weak shorts possibly cleared by close and FA at top was ref..Long side was considered risk at last session close due to poor low. NF had a large gap down and got open drive which then got failed and gone for closing the gap.. After closing gap, NF could not sustain VWAP of last neutral day auction and then gone for filling back dev value then closed at dPOC.
Pointers from today's auction :
As mentioned in commentary, following are favouring buyers at close of the day.
a) They left a decent buying tail and defended that till close on retest
b) dPOC pulled higher and closed around there..
c) 16200 good swing zone to look for temporary rally which got respected today..
Now with all above info, next buyers should hold 16270-250 band in next session or worst case 16210-16190 zone then could go for value higher above 16310 then next should go for clearing tail at top to get rally higher.. or simply gap/drive above VAH zone to get a move higher and once done never comes back to value area as we have poor value area down so that could pull NF to repair value area fully.
NF is printing 5th day of one time frame down and 5th week of one time frame down and inventory is too short now..MO also hitting > -100 mark..so, with above said evidence of buyers effort from intra auction + this too short inventory, best chance for buyers to get a relief rally towards 16500/16650. If they fail to get a rally or fails to sustain rally and back below accepting in today's buying tail zone means, could make things worst from worse. for another leg down.
Swing obj next zone 16200 tagged now and 16050/15900 remains open.Odds are higher to get them once a relief rally is done or if we start accepting below 16190 again. Today's low not good enough to call for larger reversal and looking for only small relief rally/balance if we hold tail zone and expecting possibily within this week new swing low..Hence, sticking to same view for swing as mentioned in last report. Sell on rise in zone 16500-16600 with negation at 16700..Anything above 16650 with value only now confirms reversal so with this negation of 16700 any bounce could be used to short till we get 16050/15900..
Charts & 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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