After a large 10+ gap open higher and small rally, price sold off sharply from a no-excess B/C period high at 2831.25.
An early market profile trading reference could be at the 2822.00 late rally high at the close. Acceptance above that level has good odds of at least targeting the poor high. Failure to find acceptance back above the late rally high could test the session low at 2812.00, which was just one single tick above the prior day’s close, a potentially weak day time frame reference.
The prior recovery high at 2818.25 had been traded through, probably reducing the significance of that level as potential support.
Often large gaps that begin a new week develop into a new short term trading range. Large gaps are also rarely filled the day after they are created.
The late rally high at 2725.00 could be an early Market Profile trading reference on the next trading day. Continued acceptance below that level keeps the current downtrend in tact. Acceptance above the late rally high targets the excess single prints above 2732.00, and potentially test the prior monthly high at 2745.25. The session low, at just two ticks above the psychological 2700 level, is also very questionable.
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