E-minis move above last week's high

Al Brooks Price Action from Monday, March 26.

pending chart 1306

Weekly chart Reversal Bar last week, but small PullBack bull today and moved above last week's high.

  • Monday, March 26, 2012
  • Bar 1 - Yesterday = reversal day. Big gap up but small bar. Wait. Big gap so probably will go sideways before long and test moving average
  • Bar 7 - Tight trading range, breakout mode, might be final flag. Close to high of last week = magnet
  • Bar 8 - Breakout. Traders will buy with stop below
  • Bar 9 - Follow through, more up
  • Bar 10 - More follow through, 10 bars without pullback so probably buyers below, but also buy climax so might be high of the day, and far above moving average. Close to high of last week so odds favor at least one more push up
  • Bar 11 - Two bar revresal, final flag, ok swing short, but 1st pullback in trend from the first bar bull so probably one more push up. Less likely buy climax high of the day. Unclear, far from moving average so better to wait for more info. Bears will short for swing down, but probably buyers around moving average and might go sideways to moving average so not strong short. Still always in long but far from moving average after gap up and odds favor sideways to moving average. Better to wait
  • Bar 22 - Two legged pullback in a bull move but bear bar and 3t above 6 high breakout profit target, so might have to get closer to 6 high and to moving average. Always in long so ok buy but tight trading range and not close enough to moving average on quiet day so better to wait. Bears will short 1t below 18 high for double top bear flag. Maybe 30% chance of making 3 points or so while risking 2t so ok short
  • Bar 39 - Bull inside bar, two legged pullback in a bull move 22, ,f breakout below moving average, moving average gap bar, one bar final flag, wedge 33 35, but only 1t body and 10 bar bear microchannel. Never clearly became always in short so better to buy low sell high and scalp and now market is low. If get strong bear breakout, then will flip to always in short. Higher probability to wait for bull breakout and then buy pullback, or for bear breakout and final flag reversal up. Some swing bulls will have stop below 8, so market might have to get there. Ok to buy with wide stop, or to wait for breakout pullback buy or final flag buy. Better to not short after 30 bear weak bear channel when never clearly always in short
  • Bar 40 - Weak entry bar
  • Bar 41 - Weak follow through. Might form two legged pullback in a bear move for test of 8 low. Two legged pullback in a bear move might become final flag
  • Bar 42 - Two legged pullback in a bear move but doji and target only 4 today/tick below (1t below 8 l), so better to wait to short. Ok to be long with stop 2t below 8 or below 4, and ok to wait to see if get final flag reversal up after the test down
  • [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.

Originally published on BPA Forums. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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