NF had a short covering auction in last session.Observation from many information was that we could get back to balance and yday auction actually weakened the structure..We had a dPOC skew higher hence expected buyers should get open near PDH and move higher else repair back of poor value area. NF straight away today opened below value area into large buying tail zone..Below 15650 probe was marked for 15570/15510/15450/15380. NF via liquidation move cleared all this objective and then closed at dPOC.
NF today fully negated large tail and gap of failed trend day of last session..Clear sign of balance has started.
It was 3-1-3 profile today with nice balance and tail at both ends..If sustains tail = trend else back into value area probe.
Just opposite of yesterday, we had dPOC skew down at close..Sellers should get follow through down else short squeeze possible..
As discussed in commentary today, NF could hold previous 2days composite down for a session or two and go for filling the zone between 15350-15750 roughly before deciding next move. Structure is calling for this auction.
And, we have back to back poor value area with yday shorts cleared and today longs liquidated..Data is flattish now after back to back equal volume day..So, repairing this back to back poor value area is probable scenario as of now. Failing to do such value area repair and accepting below 15350 calls for further liquidation down move.
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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