NF had a gap down and lower value day in last session post excess formation on Friday..Considered sellers in control.Observation was that auction was not complete on downside in last session and more follow through expected. Below 15720 considered weak for 15635 then below 15620 expected 15580/15550 probe..NF had a open drive down and probed till 15590 and then turned into b profile which closed below dPOC.
Pointers from auction today :
That excess at 15950 zone after having gap down and lower value day yday, got another neat follow through with large tail with drive and second day of lower value day.Closed below dPOC and still sellers still in control.
NF cleared last 3 week low / 20days low.Sell on rise now with two zones as clean resistance 15690-15720 then 15800-15820..With Excess + gap down + selling tail structure from last 3 sessions, V shape reversal got lesser odds to clear these zones on first test.Expecting test of these zones to face rejection before moving higher.
Volume of last and today's session are above average and more liquidation possible as per structure. As mentioned in weekend report and yday report, July now cleared June VAL zone 15650 of clean monthly balanced profile and no sign of defense at 15650 as of now from buyers..Next probe zone now 15500-15450/15300.
Swing shorts context wise expected to probe 15600 staying below 15820 which is done.Negation same 15820 to look for 15450 next.
For next session, 15710-15720 resistance. Failing to stay above this band could drop back to 15660 and below 15660 could get 15635-15620.
Below 15610 could test 15580/15550-15530 if sustains then 15480/15450-15435/15365-15350 probe possible.
Failing to sustain below 15580 and back above 15620 could test 15650/15680/15710 and bullish above 15720 for 15750-15765/15780/15820 if sustains then 15855/15890 probe possible.
Charts and data :
Detailed plan with references to carry forward, trade hypos for next session, any importance nuance from the day and view based on weekly and monthly time frame are available to members via private blog.
Notes :
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