NF had FA at low then neutral extreme day with short covering auction closing at high in last session. After having large extension singles + NE close, expection was that buyers should get gap or drive then stay higher else repair of extension singles was expected. NF got a clean gap today but could not sustain the gap and gone for open rejection reverse move which lead to long liquidation all session to fill most of yday extension singles then closed below dPOC.Hypo F played out from 17360 to 17225 obj.
Pointers from today :
NF negated excess left on 21/03 but brought another probable excess today via selling tail above last 3days range. This excess all day kept pressure to push buyers liquidate..Probable excess becomes confirmed excess for ST once clears 17050.
This all day pressure pushed for dPOC skew at close and sellers had edge at close..They need to get gap or drive down after such b profile today for more liquidation..Else, could go for overlap session.
After such large extension singles in 3IB move yday, observation was that they rarely remain as singles so if buyers fails to stay higher,repair was expected..Today most of extension singles closed with value and this is weakness for buyers..However, buyers managed to hold yday VWAP zone of neutral day today and left buying tail there.This tail should go for accepting above 17340 tmw for buyers to gain control on auction again..Failing to do so and giving up tail means more liquidation.
17350 wide POC of Feb balanced month got 3rd time visit in last session.Buyers after FA at low yday, expected to move higher above this POC zone..They had a chance today but failed to do it.. Failing to stay higher and break of 17320 suggested for swing short for 17220/17125/17025/16950. This got activated today and met first obj 17220. Negation for these shorts now at 17450 to look for remaining obj..Once moves below 17170 could move negation to 17350. Swing long can wait as of now as we got probable excess at top..If they could not clear 17050 FA at low and getting revisit at 17450 then could think on swing longs.
Charts,data & Hypos :
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.
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