NF had a trend-up day yesterday in a multi-week large balance, so follow-through was crucial for buyers, and for that, they needed to sustain above 21840 + scale over 21910 resistance level. NF today got a minor gap up open above PDH and did a look above 21910 but failed to sustain and went below 21840 in the A period itself. Below 21840–815 zone sellers took control and probed back to Yday dPOC (dev point of control)-21740, which was marked as a magnet, and then went on to do a probe towards Yday large buying tail. The day ended as a double distribution (DD) down day.
DD down day + Selling tail + 45 degree move away from dPOC and spike down today. Previous session trend up day completely negated and spike down with good volumes into Yday large buying tail. Clean weakness in structure.
After a DD down profile, sellers should look forward to holding below extension handle (EH) 21745 + build value in today’s spike down zone to continue the down move; otherwise, above 21770 DD down VWAP, another overlap profile is possible to check supply at 21810–830 / 21860 zone.
29th and 30th Jan two-day composite profile now with value at 21885 (VAH) — 21830 (POC) — 21710 (VAL). This two-day profile is printed above the three-day composite profile since 23rd Jan, which is a long liquidation profile, and the value stands at 21535 (VAH) -21410 (POC) –21320 (VAL). So as per the larger time frame context, sellers getting follow-through selling holding below 21710 are to probe towards 21540, 21410, and 21330 to do a complete value swipe of that three-day comp profile.
For the next session, sellers ability to hold below 21720 or worst-case rejection from 21750 zone + below 21660 is for probe 21560 / 21520–500 / 21410 / 21380 / 21330. Any failure to sustain below 21660 and move above 21740 is to check supply at 21770 / 21810–830 / 21860. Buyers if want to survive weakness should look for sustaining above 21720 for the entire session next and get acceptance in the 21770 zone until then skew down lower odds.
