E-minis reverse off early strength

Brooks Price Action: Wednesday, May 16

pending chart 1368

Opening Reversal day

  • Wednesday, May 16, 2012
  • Bar 1 - Yesterday = late selloff into gap on daily chart. Report 11 am. Failed many times at 15 minute 20 bar moving average plotted on a 5 minute chart so should try to get above and hold above for at least 10 15 minimum or minutes bars. Look for or near moving average and for market to try to stay above 15 moving average all day. Tail so buyers below
  • Bar 4 - Strong outside up bar so always in long and more up. Bulls will buy market and close with stop below 4 or below 3 high
  • Bar 5 - Bull follow through but tail and near top of 3 day trading range so sideways likely
  • Bar 7 - Strong bear reversal bar, microwedge, wedge 75 1, but always in long so buyers here
  • Bar 9 - Two legged pullback in a bull move 7 but tight trading range likely
  • Bar 11 - Final flag at top of trading range but bull body, like yesterday 33, wedge 1 7, but sideways most likely since should hold above 15 minute 20 bar moving average plotted on a 5 minute chart for many bars. Less likely, high of the day near top of 3 day trading range. Better to buy pullbacks, since always in long and 15 minute 20 bar moving average plotted on a 5 minute chart should be support
  • Bar 13 - Bull inside bar, breakout pullback buy, but top of tight trading range 5. Wait. Might test 15 minute 20 bar moving average plotted on a 5 minute chart below, which should hold. Always in long but trading range pa so far and top of 3 day trading range
  • Bar 14 - Two legged pullback in a bull move, double bottom 9, but top of tight trading range so probably sellers above. Don�t buy. Wait to see if get pullback and possible triangle
  • Bar 16 - Bear bar close on low so might be high of the day
  • Bar 17 - Breakout but tail
  • Bar 19 - Fail, failure breakout but small bull bar after 2 big bear bars so better to not buy. Breakout pullback short but might be one bar final flag. Ok swing but not scalp
  • [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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