To avoid repairing mechanical refs,poor value area left and clear strong over head supply at 11820 zone, buyers were preferred to look for drive or gap.NF gone for a gap up above 11820 and gone with slow tempo trend day in first session.Above 11820 probe higher was marked for 11880 which was done around IB time.Further extension higher met with supply which negated trend day in making and turned into neural day with IBL break and closed below dVAL.
NF registered 9th day of one time frame up but met with probable excess at top and closed below dVAL.Need follow through with lower value day to confirm this excess.
It was neutral day - auctioning above and then below IB range..Neutral days especially after a trending move calls for end of old auction and start of fresh auction..Fresh auction could be balance before next leg upside or straight down move from here.
Today's neutral day was dominated by sellers with strong responsive auction by clearing morning IB period low and then closing below dVAL..So, VWAP of the day is ref for them to hold if not selling tail at top..If these two zones accepted means that negates today's supply control..They need to defend these ref zones and look for follow through down.
Price wise, staying below 11860, NF could test 11820 and weak below 11820 for 11780/11760-11740.If this auction happens then 11740-11760 zone should hold and push back price higher to 11800/11840..If this zone gives up then quite weak for 11680/11650..
Above 11860 could test tail zone at 11890-11910 if accepts then 11940-11960 then 12010/12050 probe possible..Once accepted above 11910, should not accept below 11860 again.
Chart and data :
Detailed plan with refs to carry forward, trade hypos and nuances from the day available to members.
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