Strong day yesterday with the auction failing to close any of the gap from open. At its peak, the gains were over 200 points on futures and this is quickly turning into another assault on 12k. The last attempt was heavily rejected after a strong rally, so sellers are still up here, buyers should proceed with caution, hence my lack of activity this month so far. Another point to note is that we currently trade around the 2019 composite value area high (see the grey shaded section of the profile on the left).
The upper channel line (previous resistance) is still holding price action, but for how much longer. The current price action is showing signs of indecision and the last two or three hourly candle bodies have barely moved anywhere. Looking below current price, we see the void on the volume profile. This profile was drawn using price action from the 25th March low. There is very little to hold price below 11640, which suggests a potential shorting opportunity, if we get there. That idea will become more apparent if/when we break back into the old channel
Looking at the far right we saw a similar volume profile on the last image. But as we are ‘zoomed in’ we can adjust our line to 11620 and see the low volume zone directly underneath. That opens up a short down to the 11550 higher volume spot there. I think that idea is risky for today considering we’d need to break yesterday’s low and expect to get a similar level of momentum to yesterday, but in the opposite direction. That may be a ‘tomorrow/Thursday’ idea. I’d expect the 665 POC to get a tag today.