NF had large selling tail and liquidation day in last session.ith dPOC skew down observation was that probe was incomplete at low. Was looking for test of minimum of 16920-16900. NF started with large gap down in this zone and then started driving down. Below 16880 probe was to get gap close at 16710 which happened via morning tail itself..It remained lower further till 16430 then bounced higher to close at dPOC.
Auction recap :
After having long liquidation day leaving out of balance from 17220, today left another wider range long liquidation day.
It was gap down + large selling tail combo which could hold the auction for few sessions.
It has left poor value area today due to second half grind and bounce..Holding below gap+tail zone of today looking for repair of this poor value area in coming sessions.
NF cleared November month low and we have got series of long liquidation profiles now..Any reversal now possible only after some balance. As mentioned in last report, reversing through such long liquidation profiles straight is tough ask hence we need a balance before moving higher.Any imbalance move higher could be sold off.
Despite pulling about 200+ point from lows, no sign of demand at lows as per data today..dPOC skewed higher into close..If buyers are committed then they should defend 16630-16660 band in early auction and accept above 16720 to build value higher to accept in entire selling tail zone..Failing to do so or stay higher and back below 16630 later in the day could call for repair of poor value area left today.As mentioned in commentary, staying below 16630 could look for repair till 16500-16460 zone.
Swing has opened up 16335/16240 zone after clearing 16550 weekly support level today. 17050 negation for this as of now and could move that down later based on auction in coming sessions.
Trade hypos for tomorrow
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.
Comments