Day before yesterday we had the most volume below the 50% range and we closed at days high. This signals heavy buying at bottom and at close Buyers flagged their victory at top.
Yesterday, it was a good battle between buyers and sellers at 4716 being the most volume traded. This signals sellers kind of accepted the higher prices from day before yesterday and didnt really outright rejected it.
Overnight, sellers tried to move the price lower but during NY session we have opened above yesterdays value area. To me this signals that short sellers from overnight and yesterday are currently trapped.
What does this mean to us and how can we trade this....
During the first 30 mins, buyers didnt show much aggression and didnt cross yesterdays high. So expecting some choppiness between 4710 and 4735. As mentioned yesterday, I still dont anticipate a clear run up to 4780 but i may be a slow grind up to that.
I will only engage the market today around 4716 for small scalps with bias towards being long. If we do break out upwards, i will watch the show from sidelines.
