NF Short covering rally

Nov 17, 2022

The NF has rallied strongly from October and is near its All-Time High. It has left behind 7 upside gaps. On the 10th of November, it made a downside gap hinting that there could be an end to the rather continuous rally. However, the next day it gapped to the upside - filling the downside gap with an upside gap. A rare and unusual kind of rally. In the past four days, it has been in a very tight balance. If we take a composite view of the movement from the 10th to the 16th, it can be seen that it is making a P formation - usually indicating Short Covering. Chances are that there could be a sharp correction to the downside shortly. 7 unfilled gaps appear to be some sort of a record.