medium · Order Flow Analysis absorption-exhaustion-imbalance
During the RTH session in Corn (ZC), price approaches the overnight high of $376.00. A 10-minute bar shows heavy bilateral volume at $375.75 and $376.00, with both bid and ask volumes exceeding 900 contracts per level. Δ is +15.
What is the market doing at this overnight level?
- Retail traders are causing noise at a round-number level.
- Initiative buyers are aggressively clearing out the overnight supply.
- The market is exhibiting a delta divergence, suggesting an immediate reversal.
- Absorption is occurring as participants transfer inventory between institutional buyers and sellers.
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