NF had a 3rd day of one time frame down in last session and buyers expected to accept in tail else overlap or below last day of b profile expected another liquidation profile. We had tested lower end of month long balance and balance rules were in focus for today's session.
NF showed the way via open drive down breaking PDL early in the day with high volume that it wanted to look below balance. Gap or open drive below b profile always meant for another long liquidation. Considered weak below 17710 tail zone for 17560 then below 17550 expected 17490. NF gone way below this and probed till 17300 then closed at dPOC with a bounce.
Auction recap from the day :
NF continued one time frame down for 4th day.
It was clean 3IB down move triple distribution profile with large selling tail..Highest form of long liquidation.
Outside week resolved downside.
NF cleared month old balance downside and probed below Oct low and left a large buying tail. Buyers need to hold this tail in coming sessions..Acceptance of this is for next leg of liquidation move.
All above information suggesting quite a large liquidation took place today. Immediate reversal lesser chance and could call for overlap if not continuing the down move. Reversal of this profile is for trend reversal.
Mentioned under "weekly" time frame in last report that, outside week closed below VAL zone as weakness and sellers if committed then expected to push below 17700 to get 17450/17300/17200. They gone for 17300 in a single session. Now 17680-17750 strong res band for them to accept below 17340 next to get 17240/17150. Above 17750 could look for supply easing off and buyers could take control. Till that happens no long bias for swing as of now.After a session or two could bring down this ref.
17400 support for next session. Failing to stay below this and accepting 17450 could move to 17480/17510-17525 and bullish above 17545 for 17575/17610-17620 if sustains then 17660/17700-17720 probe possible.
Failing to stay above 17480 and back below 17440 could get 17400-17390/17365-17340 and weak below 17335 for 17300/17265-17250/17200/17160-17150.
Important nuance : 3IB down day so better to look for some two way auction for inventory adjustment atleast in first session for next day.
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