E-mini S&P breaks out of bear channel

Brooks Price Action - 12-05-2012 Wednesday

pending chart 1668

Fail, failure bear breakout of bear channel, expanding triangle bottom, double top major trend reversal, doji day

  • Wednesday, December 5, 2012
  • Bar 1 - Yesterday a trading range day and had a dbbg higher low major trend reversal into the close of day. Doji, within trading range, so buyers below, sellers above. Be careful with stop entries when trading range pa. Buy low of week sell high and scalp
  • Bar 3 - Bear inside bar, expanding triangle 55 68, possible high of the day but all bars with tails so trading range day likely and buyers below. Swing sell or short or wait
  • Bar 9 - Bear ioii, trading range day, fbo below 62 68 double bottom. More trading range pa. Buy low of week sell high and scalp. Bad for stop entries so far. Be patient
  • Bar 11 - Outside down bar, close on low, possible bear breakout. Should fall below low of yesterday
  • Bar 13 - Bull reversal bar but 1t body after 2 big bear bars. Sellers above and should fall below low of yesterday
  • Bar 15 - Fail, failure wedge bottom so should fall for measured move down. Big bar so sell climax, but not yet at measured move so more down
  • Bar 16 - Bull reversal bar but above support so don't buy or long. More down but might reverse soon.
  • Bar 18 - Big bull reversal bar at measured move target, after consecutive sell climax 7 12 15. Expanding triangle yesterday 25 43 or 32 43. Reversal up from bear breakout of bear channel so target is top of channel, around 1407, but lp at the moment. Trending trading range day more likely. Should get approx. Ten bar, two-legged correction sideways. Ok buy or long but buy or long 1/3 size since stop below big signal bar. Should get pullback and channel up so hard to hold long in bear. Only take buy or long if can manage correctly. Else, wait. Strong bull bar after consecutive sell climax so 60% chance it is low of next couple of hours and maybe low of the day
  • Bar 20 - Double top 16 but consecutive sell climax and approx. Ten bar, two-legged correction sideways to up likely so probably buyers below. Lp sell or short and better to wait for approx. Ten bar, two-legged correction before looking to sell or short again
  • Bar 22 - Double top 16, strong bear bar, but always in long and approx. Ten bar, two-legged correction sideways to up likely so buyers below
  • Bar 23 - More up but buying high so more difficult to manage. lp so swing only or buy or long pullback.
  • [more Bar-by-Bar Analysis, Daily Webinar and Trading Course info at www.brookspriceaction.com and www.brookstradingcourse.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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