16176-16182F – Support
16040F – Support
16290F – Previous Singles selling area of 11/8 Now turned support
Note: When market tests these levels and show the expected behaviour i.e. holding a support or not crossing a resistance that combined with a datapoint becomes a valid trigger for a trade.
16329/345F – Support from Put writers.
Note : These references are from the open interest data and are valid only for the first 10-15 minutes of next day’s open because new positions come in during market hours which will create new references to track.
Open of today was at the single print zone mentioned yesterday of 16290F and NF has consolidated just above this level for the opening 15 minutes during which time Put writers were active and the market choose to rally higher towards the previous resistance of 16356F later in the day.
Notably a lot of PE writing came in next week options of NF today and today’s support references mentioned above can serve as new support for the market.
Also worth mentioning is about the yesterday’s PE writing from where this leg started which was mentioned in our earlier report.