Previous Day’s Recap

Yesterday was a balance day, as neither buyers nor sellers had a dominant effect on the market. The low was a poor low, while the high was also a poor high.

However, from the previous day’s market activity,

I observed that lower prices cut off activity, suggesting sellers were not interested in extending the range lower. The 8/11 prominent POC area was not revisited, and neither the high nor low took out the 8/11 weak high and excess low.

Price spent less time inside the 15/09 profile range, although it closed inside it. This also led me to consider a potentially bullish scenario.

Today’s Opening

In my current weekly analysis article, I highlighted today as a dominant-concern day due to the CPI news expected during the session.

The market opened outside the previous day’s value area high. During the first few hours, it one-timeframed lower and revisited the previous day’s POC area. the market is current trading below 15/09 poor low.

Profile Structure

The current market profile structure looks like a b-shaped profile. Both the high and low are good.

fig 1: current developing profile structure

Current market confidence is high, as the POC is in line with price at the moment.

Market Generated Information

Previous Day MGI

  • 8/11 poor high

  • 8/11 prominent POC

  • 9/11 poor high

  • 9/11 poor low

    fig2 market generated information

Current Developing Profile MGI

None.

Note: The market is still developing. As it develops, more market-generated information will be updated.

Possible Scenarios

Yesterday’s 3 wide low suggests that sellers are not willing to extend price lower.

Scenario 1: Bullish

If the current excess low holds, I expect buyers to extend price higher.

Bullish target areas:

  • Reclaim the 18/09 low.

  • If price accepts and builds value inside the 18/09 range, the next target is the 15/09 high.

  • If the 18/09 low is rejected, expect price to rotate back inside the 16/09 value area.

Scenario 2: Bearish

If the current excess high holds, I expect the market to trade back below the previous day’s value area low.

Bearish target areas:

  • Trade below the previous day’s value area low.

  • If price accepts below it, take out the previous day’s low and reverse.

  • If price accepts below the previous day’s low, take out last week’s low.