E-mini S&P looking for a breakout

Brooks Price Action - 07-06-2012 Friday

pending chart 1456

Gap spike and channel bear, lower low major trend reversal, bull reversal day

  • Friday, July 6, 2012
  • Bar 1 - Big gap, bull body but tail so sellers above. Probably mostly sideways until closer to moving average
  • Bar 3 - Fail, failure one legged pullback in a bull move so ok sell or short but dojis so trading range likely and scalp better
  • Bar 6 - Two bar revresal, two legged pullback in a bull move, 1t tail, big body. Ok swing buy or long but not high enough probability for scalp since tight trading range
  • Bar 7 - Weak entry bar so many will exit on close and below. Double top 3 so two legged pullback in a bear move sell or short but tight trading range so far so probably better to scalp sell or short or wait\. Lots of tails and overlap to day so bad for stop entries
  • Bar 8 - Bear breakout but close at 5 low, not below
  • Bar 9 - Wedge, bull reversal bar, but 2t tail so better to wait
  • Bar 11 - Big bull bar, close on high, 2nd leg up likely top of trading range so wait to buy or long pullback or 2nd strong bull bar's close
  • Bar 12 - Double top 7, strong bear bar. Ok swing sell or short for possible high of the day and ok to wait to see if get breakout pullback buy or long
  • Bar 14 - Bull reversal bar, ok breakout pullback buy or long for 2nd leg up
  • Bar 15 - Breakout pullback sell or short from 12 two legged pullback in a bear move. Bulls will exit below. Near bottom of trading range so lower probability sell or short. Small trading range so far so probably will get breakout up or down and then trending trading range day. Many bull bars so should get rally at some point, either from here or after bear breakout and lower trading range
  • Bar 17 - Fail, failure breakout new low of the day, two legged pullback in a bull move, but small bar, 1t body so not strong buy or long. Better to wait for 2nd entry or bull breakout
  • [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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