E-mini S&P makes a double top bear flag

Brooks Price Action - 07-25-2012 Wednesday

pending chart 1480

Double top bear flag

  • Wednesday, July 25, 2012
  • Bar 1 - Yesterday = wedge bottom. Should have 2 big legs up. Channel so probably still part of 1st leg. Just below 24 high and 60 moving average, bull bar, so up at least a little. Only 20% chance low of the day
  • Bar 2 - Strong bull bar but 1t below s/r so don't buy or long
  • Bar 3 - Strong bear bar, double top bear flag, fail, failure breakout of channel, ok swing sell or short but probably buyers below since 1 and 2 strong
  • Bar 4 - Big bear bar, close on low, more down
  • Bar 5 - Bear follow through, more down. Sellers above, especially since missed moving average and bottom of channel by 3t. Should poke below channel after failing at top of channel. Market should fall on report. Less likely, or and low of the day
  • Bar 6 - Breakout pullback sell or short but report so better to wait
  • Bar 7 - Big bear bar but might be sell climax on report
  • Bar 8 - Wedge 1 5 but doji so better to wait. Probably sellers above
  • Bar 10 - Double top 6 but 1t body. Probably ok scalp
  • Bar 11 - Tails so another trading range bar. Double bottom 7. Probably need more of base before market can create 2nd leg up, if going to get 2nd leg up from large wedge bottom. Many trading range bars so bad for stop entries and beginners should wait
  • Bar 14 - Fail, failure breakout below 9 11 micro double bottom but 1t body. Wait. Probably sellers above
  • [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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