E-minis look for follow-through buying

Brooks Price Action - 05-24-2012 Thursday

pending chart 1378

Possible triangle, higher high micro trend line, large wedge bull flag and late bull breakout

  • Thursday, May 24, 2012
  • Bar 1 - Yesterday = strong close, two legged pullback in a bull move buy. Strong bear far so final flag short. Scalp better since steep moving average and probably sideways more than down after strong buy climax. Maybe approx. Ten bar, two-legged correction sideways to down. Should get follow through buying from yesterday strong bull spike, especially from 73-76. Might get channel up
  • Bar 2 - Breakout pullback buy but 2 strong bear bars so sellers above. Don't buy
  • Bar 4 - Two bar revresal. Might be room for scalp to moving average
  • Bar 6 - Or, two legged pullback in a bull move at moving average but 3t tail so sideways more likely. Scalp mode since trading range likely
  • Bar 8 - Double top 3 but wedge most likely aft strong buy climax and today with trading range pa. Breakout mode. Short small bear bars near top, buy small bull bars near bottom, and trade breakout. If strong go with trend. If weak, go countertrend
  • Bar 12 - Breakout of possible triangle 77 6. Might get measured move up. Probably forming trading range on 60 minimum or minutes chart, and probably near top. Possible triangle after buy so possible final flag. Holding above moving average so always in long
  • Bar 13 - Breakout. Traders breakout test or bought this bar as it formed and have stop below its low. Since trading range breakout and possible final flag, better to scalp most. More up
  • Bar 14 - Bull body so probably more up and buyers below, but it is a higher high major trend reversal, final flag, and wedge 75 1 near top of possible 60 minimum or minutes trading range, so ok swing short. Odds favor at least one more push up because 12 13 are strong
  • Bar 19 - Breakout pullback buy but doji and 5 bars down so sideways more likely. Bears still on swing short from 15 with stop above 16 but they will probably lose. More likely will get bull channel after strong bull spike yesterday. Ok buy for swing but not strong scalp since sideways more likely before more up. Probably buyers above 16 since many bears will give up there. Others will give up above 14 wedge, but too high up in trading range to buy there
  • Bar 22 - Double top with wedge, top of trading range, but bull body and 3 bars up and always in long and bull channel so probably buyers below. Swing short but low probability and better to only look to buy until get strong short setup
  • Bar 25 - Big bear bar, close near low, 15 and 60 mas not far below so probably more 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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