Trend condition …
Market first move was with the up trend which started 7 days ago and confirmed by a balance breakout last Thursday.
Overnight inventory was slightly short at the open which started the up move.
Inventories are getting very long which was confirmed by the poor high and the ensuing down move in “C” period. In trend markets we often see weak hands inventory correction at tops and bottoms to allow stronger hands to re-enter the trend at good prices.
Starting with weak hands inventory correction at “B” high the target became Friday’s POC and overnight low at 53.75 – 53.74.
We traded at 53.81 on the low leaving a poor low ( day traders too short ? ) before trading back with the day trend. Value was overlapping to higher and intraday POC was stabilized putting an end to the morning down migration.
We ended the day with a poor high, a poor low and a very prominent POC ( 10 TPOs across at the POC level ) that could start the beginning of a balancing area. These are also signs of weak hands domination in today’s market.
Three trading opportunities were offered for those who had a good market read today.
In “A” period going with the trend and the overnight short inventory condition.
In “C” leaving a poor high after 7 consecutive up days ( Inventories becoming unbalanced on the long side)
In ” F” trading at close to Friday’s POC.
Good trading !