Too many short-term buyers competed in the recent trend from 1st Feb 2023 onwards. However, on Thursday’s activity dominant sellers showed little aggression and that brings caution on the buying side as the day ended with AB poor high which brings the short-term inventory getting long to too long.
Market Profile structure shows that shorter-term resistance is expected around 18150 levels and too much competition from the short-term buyers reveals that any possible downside price action could bring a possible firecracker effect which could even have the odds of disturbing the current Budget Day Low i.e 17472 levels in a shorter term.
Caution is advised on the long side with temporary resistance formation around 18150 levels.
