NF had back to back long liquidation days and last session left large A tail.Observation was that large tail got zones to be filled back i.e, fair auction required hence shorts are risky till this tail holds without repair. Buyers expected to defend 18210 to get a move higher..They failed to defend that at open session and allowed a probe towards yday VAL zone then quickly started accepting above 18210 into yday tail zone via open rej reverse auction.Then all day spent time to fill back the last session large tail and closed with spike higher.
NF negated most of last session selling tail.This is happening after liquidation away from old 5days balance..Sign of balance now.
It was short covering profile for most of session and then had a late spike into close..Spike zone 18255-18295. Buyers need to sustain above 18295-18315 band early in session else retest of spike base possible then bounce higher..Spike goes means test of today's buying tail zone then bounce possible from there..
So, for buyers two support zones tomorrow..18255 then 18220. As long as this holds they are good to move higher towards 18340-18360 which is tough to clear straight and once done 18420+ possible.
Weakness below 18220 to test PDL zone then liquidation further if accepts 18150. Or failing to sustain higher above 18340-18360 band and back into last session range could drag down towards 18255/18220.
Volume again lower today on inside day auction..Likey to continue with lower volume narrow range slow move auction.
Swing view as mentioned yday neutral view now..Looking for fill in 18050-18150-18270-18350-18420-18480 zone.
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.
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