Previous Day’s Recap: 28/10
The day went as expected, with rotational activity. The high took out the 27/10 weak high before forming a poor high, while the low was also poor.
Price found acceptance inside the 27/10 value area, as explained in my analysis, and broke below the 6/09 high around 80.5K. Buyers lost that price range but quickly defended the 80K to 80.2K range, pushing price back toward the previously established excess high. The move stopped one tick below that high.
Overall confidence was low.
Today’s Opening
Today’s opening type is an open drive. The market opened close to the previous day’s value area high and one timeframed lower during the first few hours, revisiting the 27/10 prominent POC.
Profile Structure
The current profile structure is healthy, and the shape, as at the time of writing, is a classical b shape. The high is weak even though it has excess, while the low is also weak. The POC migrated with price as price moved lower, making it a high confidence day. All of this is subject to change as the profile develops.
Market Generated Information
since the Start of the Week
27/10 weak low.
28/10 poor high.
28/10 poor low.
Current Developing Profile
29/10 weak high.
29/10 weak low.
29/10 single prints.
Possible Scenarios
Scenario 2 from my previous analysis played out today as the market found acceptance inside the 27/10 value area and revisited its prominent POC.
The current profile looks like a b shape, with single prints above the current value area. Value is also building below the previous day’s value area.
Scenario 1
If the current weak low holds, which I doubt, I expect a rotation back toward the 6/09 high.
Scenario 2
If the current weak low fails to hold, I expect sellers to push price down toward the 26/10 poor low.