Inside day today after a spike-down auction from the developing balanced profile previously. Yesterday’s spike down turned out to be emotional selling as it failed to get a follow-through, and today it printed the POC (point of control) of the day above that spike high.
Double distribution and trend up kind of profile + Buying tail + Extension handle at 21923 today. The higher time frame weakness mentioned in the last report was partially negated as buyers managed to scale above 22010 today. Buyers are still not completely out of woods yet with a DD profile and inside-day auction on a lower volume day. Buyers next should look for sustaining above 22050–70 zone and bring in volumes to print a higher value, which can enable them to probe higher towards ATH and more. Any failure to sustain above 21970 + acceptance below 21920 zone means that weakness continues.
Three-day Feb. 2–Feb.06 → is now developing composite balance, which is a 3-1-3 profile i.e. tail at both ends and balance in between. The wide POC at 21985 is pivot. Failure to sustain above 22050 or below 21880 attracts back to the POC as magnet, and then rejection from the POC zone or else back to the other end of the value area. Between 22050–70 and 21860–840 roughly, choppy auction can continue. Sustaining beyond 22050 / 21880 trending move is possible.
