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Nextek

Question regarding single print tails

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I understand that once a single print tail forms, this can act as key support or resistance.

 

Let's say the S&P emini's created a single print tail at 1306. If we open lower the next morning below this, what was support is no longer present. Does this support become resistance now?

 

Will the buyers step in to bring prices back to the single print price level?

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Here is how I interpret it. The market gaps down below single print support. This also indicates a gap below value implying a shift in market sentiment. Therefore, the gap fill or single print support should act as resistance.

 

Gaps are invisible prints. It is important to watch what exactly happened overnight in terms of price action. If the overnight session broke the single print support and used it as resistance, there is a high chance that the same pivot level will act as resistance for the trading day.

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