E-mini breakout portends volatility to come

Brooks Price Action - 06-14-2012 Thursday

pending chart 1398

Higher low major trend reversal, then higher high major trend reversal. Late bull breakout with huge volume so measured move up or down over next week

  • Thursday, June 14, 2012
  • Bar 1 - Yesterday = consecutive sell climax, then strong breakout of bear trendline, so approx. Ten bar, two-legged correction sideways likely. Strong bear bar but buyers below so scalp only
  • Bar 3 - Higher low major trend reversal on ltf, not 5 minimum or minutes. Doji so bears will scale into scalps above
  • Bar 5 - 2nd bar up so no longer always in short. Bulls need breakout
  • Bar 6 - Big bull bar, close on high, always in long, more up
  • Bar 7 - Bull body follow through so more up. Tail and at trend channel line so might get pullback soon, but still always in long
  • Bar 8 - Bear reversal bar at trend channel line and near top of 6 day trading range but tight channel so not high probability sell or short. Might go sideways to bottom of channel. Trend from the first bar bull so buyers below. If high of the day, there will be higher probability sell or short later so better to only look to buy or long pullbacks. Might test bottom of channel and yesterday 62 bottom of yesterday upper trading range
  • Bar 9 - One legged pullback in a bull move but tight trading range so probably sellers above. Wait
  • Bar 12 - Two legged pullback in a bull move but tight trading range and 1t body so better to wait. Tight trading range late in bull often become final flag
  • Bar 13 - Fail, failure 2nd entry sell or short in a bull so bears will probably buy or long back above 11 or 13 so probably ok buy or long, but stop below 13
  • Bar 15 - 1t breakout so probably buyers above, on 2nd breakout. Still on buy or long with stop below 13 so don't sell or short below
  • Bar 16 - Outside up bar and still on buy or long so more up
  • [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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