It is a long liquidation; b shape profile today and outside day as well. NF printed a freak tick at the top, ignoring that freak tick 21889 is the traded high of the day.
Important nuances from long liquidation; b shape profile →
• Selling Tail = 21889 - 21811
• Value = 21780(VAH) - 21750(POC) - 21680(VAL)
In the last report, it was mentioned that “if FA at 21674 is taken out straight without any probe above 21960 and further acceptance below 21630, it means NF is ready to leave that large composite balance, which could bring solid weakness structure-wise.” NF did the first part today as it neglected the previous session’s failed auction and buying tail. Sellers have an advantage now, and they should go for acceptance below 21630 next for further weakness holding today’s selling tail. Strength now only if it accepts into value area high (VAH) and selling tail zone 21780- 21820 and scale over 21910. Holding below 21820 sellers remain in control.
For the next session, sellers should get an open drive down or better gap down below PDL 21662 and look for acceptance below 21630, as mentioned above. Any failure to sustain below PDL 21662 and move above 21740 could go for an overlap profile for the VAH-21780 test and a selling tail test at 21820.
Levels wise for sellers → holding 21690 + scaling below 21630 is for probe towards 21540 / 21410–380 / 21330. Further weakness only it it accepts below 21330. Any failure to sustain above 21820 + below 21760 could get 21710 / 21650–630 and lower levels as mentioned above.
For buyers, failure to sustain below 21650 + above 21740 could lead to a probe towards 21780 / 21820–850. If accepts above 21820 it is bullish for 21910 / 21960. If fail to sustain below 21630 and scale over 21690, is for 21720–740 / 21780 / 21820 probe.
