Buyers had a higher value day in last session after a trend day and expected them to hold that value for more upside. Failure and move below 16100 expected to travel back into lower distribution of trend day. NF caught everyone by surprise with large gap down below extension singles of trend day from 17/03 leaving buyers of two days under water..Right since open not allowed buyers to get exit and travelled through trend day profile and pushed down to reach swing low as trend day till close.
Pointers from auction today :
NF negated trend day of 17/03 fully and removed entire inventory of buyers from last two sessions.Buyers above 16050 extension singles from 17/03 are under water now..Clear case of weak market till they get exit.
It has printed quite a weak low at 15740 today as we already got three days of stacked lows there in 15735-15750 zone..If they are going to make this as solid poor low and getting rally means then need to get one way rally from here with one time frame up on daily basis..Else, odds of opening up this swing low bigger is higher. And my guess going with current auction environment, they may do it via gap than intra auction. As mentioned in commentary, today's reverse hook auction below 16050 opened up swing obj 15400/15200..Negation for this view at 16100 now.
It was large gap down and clean trend day. 15870 ref for next session..Holding below this, sellers gain control to extend further down..Acceptance above this could go for testing tail/ checking gap zone then could rotate down.Solid reversal on daily only above 16100 now..
Swing wise as mentioned above downside has opened up for 15400/15200/14900 from here holding 16100..Worst case they could test 15950-16100 zone once again above 15870 then could rotate down to get downside objectives.Above 16100 means then one more test to 16250/16350 zone to make current weekly overlap composite wider then could come down.Any one time frame up profiles on daily will ease this view..
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 :
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