Wednesday 12 June 2013

NFP demand zone broken today

I finally got it right about the NFP demand zone being broken today.  Price reversed at a supply zone from yesterday's 20K vol chart on the open of the NYSE.  We also had a RPM 2 bar reversal on it giving a great sell signal.

Price continued down all day until we reached the DZ at 1615 and rallied 7 points from there, before resuming the down move.  With a low around the 1610 level.  So at this time, I am expecting that the next demand level of 1690/95 should be reached in the next 2 days.  After that I do not know if we are in for a large rally or if this down trend will continue.

Towards the close of the day, it looked like buyers were stepping in with limit orders and the 15 minute chart looked as if we were seeing the start of accumulation. Also volume on the closing 2 bars on the 1 minute chart were higher than normal, and were the largest volume of the day.  So once again, this could be the start of a rally.

I really do not know which way price will go tomorrow.  We may get another low volume small range consolidation day, and as we are coming into contract roll over, anything can happen.  It could be options expiry this week, so we may get some volatility on Friday.

Here are some charts





No comments:

Post a Comment