NF printed a Normal Variation Down; Balanced profile today.
Important reference zones from today’s profile -
• Weak Low = 22000
• Value = 22055 (VAL) - 22125 (POC) - 22155 (VAH)
Today, the NF opened lower and immediately underwent an open test drive-down, scaling below the lows of the previous two sessions. Initially developing as a trend-down day, it transitioned into a balanced profile as buyers stepped in below the lows of the previous two sessions and pushed the price above the day’s VWAP.
Firstly, today’s low is notably weak — a big round number, printed at 22000. These types of lows typically indicate short-term traders dominating the auction, making it challenging to sustain a rally higher from such a weak low. So as long as holding below the 22380–410 zone, looking for repair of that weak low and a probe towards 21980–960 / 21910 levels. If buyers manage to scale above the 22380–410 zone, they might get away with that weak low.
Today's auction indicates a structural weakness, as buyers permitted the printing of a value within the previous session's buying tail zone. It is a lower value session with above average volumes. After such weakness, buyers can assert control over the auction only by achieving a higher value session above the 22380–410 zone, which represents resistance from the trend-down profile of March 13th. Until then, sellers remain in control, and it will be largely a sell-on-rise auction.
In the weekly timeframe, expecting a significant balancing auction and chop between 22380–410 as the upper end and 22980–960 as the lower end. Whichever side holds next, odds are for a trend towards that end.
