Nifty Futures printed a Neutral Center Profile today.
Reference zones from today’s profile -
• Failed auction at low = 22420
• Buying Tail = 22420 - 22455
• Neutral Day Value = 22525(VAL) - 22635(POC) - 22660(VAH)
• 5 day Composite Value = 22500(VAL) - 22580(POC) - 22615(VAH)
It is a Neutral Center profile i.e., it first scaled below initial balance low (IBL) but failed to sustain beyond IBL and went on to scale above initial balance high. Thus marking a failed auction (FA) at the lows 22420 in the process.
The previous five days of auction merging together form a composite P-shape; short covering profile. This composite profile has a wide point of control at the 22580 zone. As long as this zone holds, buyers have the advantage. Not defending the 22580 zone + Scaling below 22500 gives sellers odds to take control over the auction.
Neutral Center profile = both buyers and sellers had a tough fight over control of the auction today. POC zone 22635 is pivot / magnet. Two possibilities for next session:
1) One of them to emerge as a winner i.e., either trend up / trend down day odds; no rejection but acceptance at the value extremes (VAH / VAL) means odds for trending move towards that end or
2) Overlap profile to continue neutral auction and get a six day well balanced composite gaussian profile; failure to sustain beyond VAH / VAL zone (fail to sustain above 22670 / fail to sustain below 22520) attracts back to the POC 22635 as a magnet.
