NF had a heavy liquidation trend down day previous session, and sellers were expected to get a follow-through down. Sellers failed today and allowed probe back above major extension handles (EH) and VWAP of the trend day. Most of the session NF did two-way choppy moves and printed short covering extended P-shaped profile today.
Short covering auction + Buying Tail + Almost a inside day today expect minor swipe below PDL. Trend down day VWAP accepted today; poor job from sellers. Such poor work from sellers calls for a check at the 21560–600 zone, which is point of control (POC) and value area high (VAH) from trend down day, and then a decision there.
Two day composite POC at 21400 and today’s P profile POC at 21330 now reference for buyers to continue probe higher. Failure to sustain above 21330 means sellers could drag down for test of VAL at 21270 and buying tail 21220.
For next session buyers ability to sustain above 21410–440 zone to monitor for probe towards 21560 / 21600–630 / 21670 higher end. 21600–630 is a good zone to look for rejection back to 21540–510.
Any failure to sustain above 21470 + below 21400 might drag towards 21330. Below 21330, this is likely to get choppy two-way moves between 21190–21270–21330–21410 zones roughly.
Swing-short was mentioned in the last report for 21030, with negation at 21480. Swing short view negated today, and neutral view now for swing. Until the budget event NF could remain indecisive.
