E-mini S&P moves higher but test likely

Brooks Price Action - 08-24-2012 Friday

pending chart 1522

Wedge bottom, then wedge and higher high major trend reversal top. Spike and channel bull trend day

  • Friday, August 24, 2012
  • Bar 1 - Yesterday was weak bear channel. Wedge, but 2t tail so probably sellers above
  • Bar 2 - Strong bear reversal bar but closed gap and bottom of weak channel and not at moving average. Wait
  • Bar 5 - Bear inside bar, two legged pullback in a bear move, but bottom of channel. Scalp only or wait
  • Bar 6 - Fail, failure two legged pullback in a bear move, trendline, wedge yesterday 9 48 and today 1 4. Ok buy or long for swing and maybe scalp, despite bear body. Might stall at moving average
  • Bar 10 - 4 bars up but stall at moving average. Good to scalp at least part. Bulls need breakout above am and then probably will test trendline. Might be low of the day
  • Bar 13 - Breakout. Might be measuring gap for measured move up. Bull have stops below low. Traders will buy or long close
  • Bar 14 - Big breakout, more up, but near 70 lower high and most breakout yesterday had pullbacks. Bulls will try for 2 points up. Probably will then get pullback but bulls will buy or long with stop maybe below 14. Should stay above moving average for 10 or more bars
  • Bar 16 - Reversal bar but doji, always in long. Buyers below. Try to buy or long close to moving average. Should get 2nd leg up after pullback from wedge bottom
  • Bar 18 - One legged pullback in a bull move, should go higher but scalp only or wait
  • Bar 20 - Final flag 18, bear reversal bar, but tight channel and always in long. aggressive bears will sell or short 2 points above 14 close, expecting bulls to take profits. Should transition into trading range, but buyers near moving average. Might get trending trading range day. Since 14 gap is big, market will probably test into it and reduce it at some point, especially since near top of possible trading range. Ok to exit longs but not strong sell or short
  • Bar 21 - One legged pullback in a bull move but top of trading range so low probability. Swing only or wait
  • [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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