NF printed a Neutral Center profile after a long liquidation session previously.
Reference zones from today’s profile -
• Failed Auction (FA) at low = 21798
• Buying Tail = 21798 - 21830
• Value = 21885(VAL) - 21920(POC) - 21970(VAH)
• Neutral Center VWAP = 21907
• Minor Selling Tail = 21975 - 21989
This is a Neutral Center profile, meaning it first breached the Initial Balance Low (IBL) but failed to sustain below it, subsequently rising above the Initial Balance High (IBH). Thus marking a failed auction (FA) at the lows — 21798 in the process. The profile exhibits tails at both extremes and overlapping value session.
Neutral Center profile = both buyers and sellers had a tough fight over control of the auction today. POC + VWAP; 21920–21905 zone is pivot / magnet. Two possibilities for next session:
1) One of them to emerge as a winner i.e., either trend up / trend down day odds; no rejection but acceptance at the tail zone means odds for trending move towards that end or
2) Overlap profile to continue neutral auction and get a three day well balanced composite gaussian profile; failure to sustain beyond tail zone (fail to sustain above 21970 / fail to sustain below 21830–850) attracts back to the POC 21920–21905 as a magnet.
The failed auction + buying tail zone is an important reference for buyers to hold and not allow any acceptance below it. Sellers are still maintaining control of the auction swing-wise, and it continues in a sell-on-rise mode, with potential negation for swing short occurring above 22100.
These buyers of FA + Buying tail should aim for acceptance above the 21990–22010 zone and scaling above 22100 to shift the auction in their favor. Sellers should aim for holding below 21870–890 zone and seek acceptance within today’s buying tail to initiate a probe towards 21770 / 21720. Based on the current structure, there are good odds for tomorrow’s auction to exhibit some balancing chop rather than an imbalance move and result in an overlapping profile.
