NF had a large gap down to close the old gap at 17310 then remained as lower value day all session.
It has clearly accepted last session outside day with lower value day today = weakness.
It was clean 3-1-3 profile i.e, tail at both ends with nice all day balance between tails. i.e, overhead resistance holding at the same time buyers trying to save the lower end of auction. One camp likely to be cleared fully in next session.Rule of 3-1-3 profile is , sustain below value area = trend ; fail to sustain value area and accept back in value area = move to other end.
Both side we got failed auction today at bottom as well as top. FA at top is solid one as mentioned in commentary as it rejected from solid DD down day lower distribution i.e, on going trend of last two days printed this FA. And, this has met the other end of morning tail intra itself so this one is solid than lower one hence 17420 swing resistance now. Above this sharp rally possible.Till then auction is for sideways to downskew.
NF closed the gap at 17310 from 08/12 today.Two major supports buyers have left since that extension from 17250 were this gap and then 17410 FA on the move way up.Now, both this support gone making buyers case weak.
It was narrow range than average with neutral center auction i.e, both side IB extreme probed.Likely to get imbalance session post such narrow range Neutral day with FAs at both end.
17390-17420 resistance for next session. Failing to scale this could drop to 17350 and below that 17310-17290 probe possible and weak below 17290 for 17265/17230 if sustains then 17190-17175 probe possible. Quite weak below 17165 for 17120/17095/17055-17030.
If fails to sustain below 17265 and accepts above 17320 then could get 17360/17390-17410 and bullish above 17420 for 17440-17460/17490 then could get 17530/17560-17580.
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.
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