NF printed a Neutral Center profile today after a well-balanced no-demand profile at ATH.
Important reference zones from today’s profile -
• FA (Failed Auction) at low = 22352
• Buying Tail = 22352 - 22371
• Value = 22410 (VAL) - 22440 (POC) - 22490 (VAH)
• VWAP = 22433
• Selling Tail = 22493 - 22517
In the previous report, it was mentioned that after poor trade facilitation and a low volume profile at ATH, buyers should avoid any rotation below 22360 (Extension Handle + VWAP Zone from 1st March Trend Day); otherwise, higher time frame weakness was on the cards. Buyers today survived such weakness as they were able to mark the low of the day at 22352.
NF today printed a Neutral Center profile i.e., it first scaled below initial balance low (IBL) but failed to sustain beyond IBL and went on to scale above initial balance high. Thus marking a failed auction (FA) at the lows in the process.
Sellers managed to achieve a lower value today. A lower value profile below the no-demand profile at ATH is a weakness as per the structure. But today’s FA and buying tail from the previous demand zone suggest buyers have not yet given up trend-up auction. This FA + Tail zone is reference for buyers to defend and go for acceptance above 22440 zone. If this FA gets accepted for the next session itself, it would confirm structural weakness.
Neutral Center profile = both buyers and sellers had a tough fight over control of the auction today. POC (Point of Control) + VWAP; 22430–440 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 well balanced composite gaussian profile; failure to sustain beyond tail zone (fail to sustain above 22490 / fail to sustain below 22370) attracts back to the POC 22430–440 as a magnet.
