Daily market summary for NF and charts, data for NF & BNF -06Jan’21

NF had a spike at close yesterday..14170-14190 was kept as support band and holding that probe was for 14235-14255 which happened in IB time with 14195 low and 14250 high.. NF then gone for complete tight auction with IB range developing value in spike zone.We had a observation that market entered into balance mode and kept 14240-14260 as upper band and staying below this band expectation was to probe back last two days value area. After having value in spike zone, NF failed to clear that resistance band and broken IBL to clear last two days value area and probed till PDL.. Failing to sustain above 14235 and break of 14170 was for a probe of 14100 and NF gone for this move. Could not sustain below VAL and printed buying tail there to have a bounce back to VWAP zone and then closed at dVAL.

Pointers from the day :

NF had a 3IB down day and closed at dVAL. Staying below 14225-14245 band tomorrow skew is to have one more sideways to downside day in the existing balance in making. Bullish if sustains 14245..Prefer a test towards 14050-14000 zone before making any rally further up which could sustain well.

Expected balance to emerge and we have got sign via spike yday and today further signs with 3IB move down and then 45 degree move back to dPOC from low today..These are signs that balance to continue for a session or two.As mentioned yesterday, such violent inventory adjustments during intra auction such as spike, elongated too long/short moves in short time frame, two way quick moves happens due to fight between buying/selling inventory which leads to balance. Value creation above 14245 now could call for end of balance and continuation of rally further up.

NF has left weak low at 14078 which was FA zone low of yesterday. FAs made in balanced market got higher odds to be probed.

NF closed at dVAL..14150 is support and holding that could test 14200/14225-14245 zone..Further bullish above 14265 for 14290-14310/14350.

Failing to sustain above 14225 could test 14190/14160 if sustains then 14110-14100 probe possible if sustains then 14060/14030-14020 probe could be done..

Failing to sustain above 14225 or below 14100 could give two way auction all session in between these zones.

Charts and data:

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