It is a Neutral Extreme down profile today after a Neutral Extreme Up profile previously on Thursday.
Important reference zones from today’s profile -
• Failed Auction at Top = 22325
• Minor Selling Tail = 22300 - 22325
• Value = 22241(VAL) — 22277(POC) — 22290(VAH)
• NE Down VWAP = 22267
There was a freak tick right at the first minute bar; barring that freak tick, 22325 is traded high of the day and 22300 is initial balance (IB) high. NF today scaled above IB high, but with no trade facilitation at the all time high zone, it failed to sustain above IB high and quickly went below IB low, thus marking a Failed Auction (FA) at the top. The day ended as a Neutral Extreme down profile as it closed below IB low, but there was no spike down.
In the previous report, it was mentioned that - after back-to-back two sessions of 45-degree movement away from dPOC (developing point of control), a two-way imbalance move anticipated two possibilities — either balancing auction for one / two sessions or initiative move by buyers and continuation of trending up-move. Today’s auction confirmed NF is going for the first scenario, as buyers still have an advantage despite NE down profile.
Context-wise, it is buyers advantage cause they manage to print the daily value higher, above the spike-up base of Thursday’s NE Up profile. But this FA at the top suggest buyers are facing exhaustion at all-time highs. So it might go for another day of balanced auctioning, then decide the next course.
Immediate support for buyers is at 22170–150 zone and swing support at 22110–22090 zone, with swing long negation at 21990. As long as they hold above 22090, buyers have the upper hand, and they can again continue trending upmove towards ATH and more. If 21990 is taken out next week, it means failure of Thursday's initiative auction by buyers, which might go for wild two-way choppy moves rather than straight reversal down.
Acceptance above the 22260–22280 zone + scaling above 22310 buyers can nullify exhaustion, and the next leg of the up-move might start. Holding below 22260–280 zone gives sellers a minor advantage, which will enable them to go for probe at Thursday’s spike-up base (22170), and sustaining below that further could get tested at the 22100 swing support zone.
So expecting one more session of balancing auction between 22150–170 and 22260–280 zone roughly, and then after resolution from this upper regional composite balance, can draw the next hypos.
