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 random price noise around a psychological round-number level.
- Initiative buyers are aggressively clearing out all overnight resting supply above the market.
- The market is exhibiting a clear bearish delta divergence here, suggesting an immediate sharp reversal lower.
- Absorption is occurring as participants transfer inventory between institutional buyers and sellers.
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