cpuzz1707

NGG seeking to explore down to a LV node, may get hard rejection

Short
NYSE:NGG   National Grid Transco, PLC National Grid PLC (NEW)
4
Since the 2010 rally NGG has inverted its Volume distribution pattern.
VPOC was low near 40's, and has thickened up considerably in the 70's region to build out it's profile and migrate Value higher.
Yes, Value has migrated higher, implying that the market accepts higher prices for NGG.

It is down trending now, but a look at the entire profile since 2010 shows that it is respecting the parameters of the 3 composite Bell curves.
Bouncing off, and cutting through High vol and Low vol nodes.
Achieving near perfect 200% symmetry on the last decline, now seeking greater 200% symmetry from the highs.
The decline in Elliott terms is overlapping and sideways. It is Corrective in nature. 4 waves down are showing and corrective patterns are usually 3 or 7 waves, so I'm not really going to count Elliott waves.
The EW solution would be to count ABC-X-ABC and get to 7 waves (WXY pattern). But I've seen plenty of corrective patterns end in what looks like 5 overlapping waves to me. I'm just going on the price character which is overlapping to sideways.
Value areas are overlapping in AMT terms.

I believe a Low volume node, coupled with a 200% symmetry projection from the gap formation (point of beginning initiative move in AMT terms) is where the magic may happen for NGG for a rally.
It's a good place to hunt.
So short from below the VPOC of Area 2 and down to test the Low Vol node between Areas 1 and 2.
Buy stop behind Area 2 VPOC.

Then Long from that same LVNode, back up into the VPOC of Area 2, possibly Area 3 over time.
Stop behind Area 1 VPOC. With a long, I do NOT want to see price explore all the way back down into the VALow of Area 1. I want to stop out just below VPOC, the last hope of old VA rejection.

What once was Area 1, the 1st deviation with the VPOC, has migrated higher in Value - 30$ higher into the 70's.
The market is retesting old Value and may reject off of the Low volume node at 57.23.
If it does, and it gets buyers, it can balance back into Area 2 centered around 65, and move back into Value into the mid 70's.