E-minis breakout above three-week trading range

Brooks Price Action - 04-26-2012 Thursday

pending chart 1344

Breakout above 3 week trading range. Might test high of yesterday soon

  • Thursday, April 26, 2012
  • Bar 1 - Big gap spike and channel. Doji in trading range just below moving average so sellers above
  • Bar 5 - 4 bull bars so buyers below
  • Bar 6 - Fail, failure one legged pullback in a bear move but report and doji
  • Bar 7 - Breakout so more up
  • Bar 8 - Small bar so weak follow through. Expanding triangle 67 81 but bull body. Market might have to go lower soon to find buyers since did not find them here
  • Bar 13 - Bear microchannel and bull flag but not strong bull so not strong buy. Probably will pullback within few bars
  • Bar 16 - Fail, failure breakout double top but 3 bars up. Probably buyers below and more trading range
  • Bar 19 - Bull inside bar at moving average, two legged pullback in a bull move 13, but tight trading range. Wait.
  • Bar 20 - Possible triangle 8 16, but at moving average and in weak bull channel, near bottom of trading range. Buy low sell high and scalp so better to not short
  • Bar 22 - Possible triangle buy, two legged pullback in a bull move 19. Tail so not strong
  • Bar 24 - 2 strong bull bodies so probably buyers below. Trading range for 2 days so might be final flag high of the day, but odds favor bulls since in bull channel. Bulls buying here and below need wide stop, like below 22, so they have to trade small. If get breakout buy within a couple of bars, they might be able to use a smaller stop.
  • [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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