Debriefing Wednesday 20th July  and Today’s ECB Journal

Debriefing Wednesday 20th July and Today’s ECB Journal

July 21, 2022 0 By The Balanced Trader

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Thursday’s Data

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Wednesday’s Profile review
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Wednesday’s Debrief  

Early ON saw a continuation of the auction higher, testing the prior Settlement at 3938.75 to find support and buyers then driving higher early on in the Asian session. Briefly trading above some key references, mainly the June 10th 3959 rejection high left over following the last ECB meeting a subsequent liquidation emanating from that event. I find it quite marvellous, six weeks on, we find ourselves back in this area just before another critical ECB meeting on Thursday.

The ON session high was set at 3964.25, but the auction tumbled lower into the EU session on negative news on the Russian war front, ( I will always highlight that fundamentals will drive a market, but technicals are the map that gets you from A to B). What was striking, given the negative news, was the lack of selling and ability for buyers to absorb supply at the singles markers left over from the previous day’s RTH auction between 3920 -3924. The Low was set at 3921, for the auction to hand over into the RTH open at 3938.5 a two-point gap higher from the prior close. 

The RTH session opened with the backdrop of declining EU equities and a test of the ON low was inevitable. Remember the importance of this level being the 2-week high broken only yesterday. The initial test was labouring and unconvincing and only managed to make it as far as 3924.5.(KEY INFO**Sellers could not take out the ON low despite the negative backdrop, any trade through the open would offer significant clues and should be considered bullish. There was a drive through the open and immediately taking out the IB high. Once broken through the IB, what was interesting was the shallow PB that failed even to test the IB, only making as far back as the local LVN 3960. 

The buying imbalance would continue until the auction tested the ON high 3964, where it briefly paused to consolidate before making a further push into the mid-opening gap on the 10th June auction to register a daily high of 3977. 

Supply taps reopened at these highs, and the auction drove down to find support at the IB MID 3938, which will act as an important reference for tomorrow’s auction. The day ended at 3962.5. 

Take note, day-traders, it’s essential to maintain a bias given the market-generated information. Auction has been OTFU, and even Tuesday’s Apple reversal didn’t end OTFU buy a singular point. Poor news in the EU emphasised the auctions strength by holding yesterday’s singles markers above the prior two-week highs of 3922 in the ON session. All clues, but you need to be observing objectively and without bias. 

Normal Variation Day Mid 3863 Daily, Weekly Auction OTFU 

H: 3977.25 L: 3924.75 VPOC 3968.75 MID 3951 VWAP 3956 SETTLE: 3962.5

MONITORING: 3938 IB Mid |3924 Lows| 3977-Highs 

Buyers will want to maintain the auction above the Jim Dalton Afternoon PB low 3938 (IB MID), and sellers will look to end OTFU at the low 3924. 

ECB tomorrow, so updates will be limited and on a best endeavour basis. 

Update and Monday’s Plan

Buyers will want to maintain the auction above the Jim Dalton Afternoon PB low 3938 (IB MID), and sellers will look to end OTFU at the low 3924. 

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I learned that if you work hard and creatively, you can have just about anything you want, but not everything you want. Maturity is the ability to reject good alternatives in order to pursue even better ones.” “It is far more common for people to allow ego to stand in the way of learning.”-Ray Dalio

Trade Well And Prosper.

BT