NAS100USD: Anticipating Temporary Bearish Order Flow?Greetings Traders,
Today's analysis highlights significant bullish momentum in NAS100USD, driven by the heavy volatility following the CPI news release. Despite the bullish institutional order flow, there is potential for temporary bearish order flow. This could either serve as a brief retracement to meet specific objectives before continuing the bullish trend or, possibly, a full reversal of price action. While we must wait for further market confirmation, current conditions provide an opportunity to target the sell stop objectives highlighted on the chart.
Key Observations and Confluences:
1. Institutional Price Delivery Insight:
At present, price is positioned in a premium zone and has recently taken out Engineered Resistance Liquidity, where premium buy stops reside. Institutions often use this liquidity to pair orders by selling against these buy stops.
Institutions, having sold at a premium, will aim to buy back positions at a discount (a process associated with profit-taking). Therefore, we anticipate price to move towards liquidity pools at lower discount levels.
2. Trendline Liquidity:
The chart also reveals engineered trendline liquidity, a classic setup where retail traders buy along the trendline, leaving their stop losses below. Institutions view these stop losses as sell stops, representing willing sellers against whom they can close their buy positions. This makes these lows prime targets for institutional activity.
The current evidence provides a strong foundation to anticipate bearish price action towards these liquidity pools, offering a strategic opportunity to align with the institutional narrative.
If you have any insights, questions, or additional analysis, feel free to share them in the comments below. Let's collaborate and grow together as traders.
Kind Regards,
The Architect
