E-minis pullback after huge bull spike

Brooks Price Action - 05-01-2012 Tuesday

pending chart 1350

Huge bull spike, consecutive buy climax, higher high major trend reversal. Possible wedge lower high on 60 minutes. Small chance of double top and selloff to Oct high around 1275

  • Tuesday, May 1, 2012
  • Bar 1 - Yesterday was trading range day. Bull reversal bar but top of trading range so probably sellers above
  • Bar 3 - Double doji, top of channel, new swing high in trading range so probably get pullback but not strong short
  • Bar 6 - Strong bear bar, 4 bars down, but report so don�t short above
  • Bar 7 - Very big bull bar on report, traders breakout test or bought on way up and probably will get measured move based on height of body. Stop below low of bar, so trade small. Can use smaller stop but higher probability of fail, failure. 6 is now higher low major trend reversal
  • Bar 8 - Bull follow through, more up. Will probably enter tight trading range at some point
  • Bar 9 - Close on high. More up
  • Bar 10 - Big bar, breakout, might soon enter trading range, but more up
  • Bar 11 - Tai after 2nd buy climax so probably 1 � 2 more bars up, then trading range
  • Bar 12 - Small bar so loss of momentum. Better to take profits and buy pullbacks. Bears will start to scale into short scalps
  • Bar 13 - Bear reversal bar but 1st pullback in strong bull spike so buyers below
  • Bar 14 - B1 but might enter tight trading range soon so lower probability
  • [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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