NF printed a double distribution (DD) down day and it is outside day as well.
Important reference zones from today’s profile -
• Poor high at Top = 22272
• DD ProfileValue = 22100(VAL) — 22226(POC) — 22272(VAH)
• Minor Extn Handle 1 = 22184
• Extn Handle 2 = 22141
• 4 Day Composite Value = 22075(VAL) — 22102(POC) — 22210(VAH)
NF did a balanced auction in a small range for most of the session, then late into the second session, it got a liquidation down move. It printed a poor high at the top, i.e., no excess selling tail at the top, but it is exhaustion from buyers. In the previous report, the 22010–21980 zone was marked as a swing support zone, and NF did a test of that swing support zone; it printed day low at 22023.
Double distribution profile today with a 45-degree move away from the dPOC (developing point of control) i.e., despite the trending imbalance move down, sellers failed to bring the dPOC lower. So for the next session, sellers need to create a value lower, ideally holding below extension handle zone 22140, or else the price will run back to the dPOC zone at 22230.
With a poor high at the top and a 45-degree move away from dPOC, sellers should get a follow-through next session and go for rotation below 22980, which can get the auction in their favor. Any failure from sellers to create a lower value; level-wise failure to sustain below 21980 and scaling above 22140 it could turn out to be an inventory adjustment break. The inventory adjustment break happens to clear out weak hands / longs and then goes on to continue the trending move.
Sellers succeeding at their job will get a probe towards 21920 / 21880 and it is quite weak below 21880, which will get probe towards 21820 / 21770 / 21730. Any failure to sustain below 21980 might go for check at supply zone at 21140 / 21180–190 and scaling above this 211180–190 zone, buyers will take control to get the price back to 22230 / ATH 22280–300 / 22375.
