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Last week the auction did not manage to stay above the Jan series vwap of 7535 for the first two sessions and broke lower. However selling pressure was also not strong enough below 7400 to push the index below 7310 and the index managed to recover a large part of the losses.
we continue to see a large balance developing between 7660- 7320 and they represent the boundaries which have to break for a trending move this series. Within this 340 point range is a smaller 7405- 7570 range which we will watch in the coming week.
OrderFlow shows selling coming at higher levels and whilst our puts are not making profits, the path of least resistance remains downwards till below Jan series vwap of 7535.
For the week, we will be watching 7405 on the downside and 7572 on any pushups. Below 7405 we expect the auction to see 7320 and below and above 7572 we could have a re-look at the 7680 supply.
In the BN chart, overhead supply still seen at 15430 and 14900 is emerging as a support.
14900 needs to be broken by bears to push it below current Feb lows and Jan lows of 14760. In that case, we run down to 14200 and 13950.
Above 15430 keep the possibility open of seeing 16111.