S&P shows failed breakout below daily microchannel

pending chart 1297

Gap down and then a weak bull channel, failed breakout below daily microchannel.

  • Tuesday, March 20, 2012
  • Bar 1 - Yesterday daily chart has small bull microchannel so 1st breakout below should fail, failure. Gap down so breakout, so might get trend up. Might get double top around moving average and then trend down. Yesterday had buy climax and then selloff into close. Big gap but doji so buyers scaling in below and sellers above
  • Bar 3 - Big bear bar but probably buyers scaling in. Don't short
  • Bar 4 - Big bull bar, close on high, ok swing and scalp buy, possible low of the day. Might get double top around moving average for high of the day
  • Bar 6 - Breakout pullback short but doji after 2 bull bars so buyers below
  • Bar 8 - Breakout but need follow through
  • Bar 9 - Bear inside bar, fail, failure breakout, double top 1. Ok swing short, but probably buyers below since market should get closer to moving average
  • Bar 13 - 2 inside bars, close on high, breakout test or bought 4, more up. Ok swing buy, but less certain scalp since top of trading range
  • Bar 14 - Double top 8 but bull body and always in long so buyers below. Should get to 60 minute 20 bar exponential moving average, which is about 4 points above 4, and bulls will likely take at least some off there.
  • Bar 15 - Breakout pullback buy but bear body so not strong buy
  • Bar 17 - Bull follow through from 16 breakout so more up and probably buyers below. Swing bears can short since wedge at moving average, but they will probably lose (l probability )
  • Bar 19 - Bull inside bar, but close to where 4 profit target bulls and 60 minute 20 bar exponential moving average bulls will take profits so not high enough probability for scalp. Still on swing buy
  • [more Bar-by-Bar Analysis in the Forums at www.brookspriceaction.com]
About the Author
Al Brooks

Al Brooks, M.D., is author of the Brooks Trading Course (27 hours of videos at BrooksTradingCourse.com), several books on Price action (Reading Price Charts Bar by Bar: The Technical Analysis of Price Action for the Serious Trader, Wiley, 2009, and the 500,000 word, three-book series, Trading Price Action, Wiley, 2012), and numerous articles in Futures Magazine. He also provides live intraday E-mini price action analysis and free end-of-day analysis on www.brookspriceaction.com.

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