Not technically a double distribution, Tuesday’s profile chart could be looked at as a balanced profile with both a poor high and a poor low.
Potential balance trading scenarios could include :
– Remaining in balance
– Look above or below either the poor high or low and fail, returning back into the profile (potentially targeting the opposite end)
– Look above or below the range (repairing the poor high or poor low) and accelerate, or find acceptance, at higher or lower prices
If a “look above and fail” scenario occurs, price acceptance below Tuesday’s poor low targets Monday’s upper distribution low and single print at 2744.25. When price re-enters a previous distribution in a profile the potential exists for it to reach the opposite end.
Acceptance back below 2744.00 could target Monday’s low at 2737.00, possibly the single print and lower distribution below 2735.00 on the Jan. 5th profile, and potentially the low at 2726.50.
Further liquidation could target the low at very wide point of control from 1/4 at 2725.25, the lower excess single prints in the profile, and potentially the gap fill from 1/3.
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