We had another trend day in the markets today as both the NF and the BNF started at one end and closed at the other.
Going into the day we were fairly confident of the Market being strong above the PDH from wednesday.
I was expecting the seller to show up sometime during the day and give us a neutral day as discussed in yesterday’s post. However since he did not show up, we had one time frame in control all day and we has one more session closing at day highs
The BNF chart above shows the same pattern as the chart posted yesterday in this section.
We had a grinding move till it about 12.30 and then a sharp move higher to make it a DD
The upper area of the distribution is 11319- 11252.
All dips to 11252 are buying opportunities and should be used to enter a position for a new target of 11380.
However I don’t advise going long in big position sizes as the BNF has moved from 10656 to 11339 or a move of 683 points in 3 sessions. So even though momentum is up, the risks are increasing.
If we move below 11252 then BNF can see the VPOC at 11178 / 11196.
New support for the move is now at 11125.
The NF broke out of the balance of yesterday and closed higher.
Momentum continues to be with the buyer and a move above PDH at 6436 tomorrow can bring 6484 by close.
Weakness sets in only below DPOC 6417- 6411.
In which case NF can look to go below to 6388 to correct some anomalies in the structure.