Stock market price action carries indexes higher: Brooks

Brooks Price Action for Tuesday, June 18

pending chart 2136

Trend from the first bar bull, final flag, higher high major trend reversal top, bull channel

  • Tuesday, June 18, 2013
  • Bar 1 - Yesterday ended with a strong rally after big bear breakout, always in long, but possible lower high major trend reversal. Close on high but in yesterday tight trading range so lp buy or long.
  • Bar 3 - Bear doji but 2 bull bars so probably buyers at the low of week of the bar and probably scaling in lower for scalp. Wedge lower high major trend reversal, but lp sell or short. Better to wait to sell or short.
  • Bar 4 - Outside up bar but doji, tight trading range no scalping with stops. Ok swing but better to wait. Should try to test 50 and high of yesterday, since close enough
  • Bar 5 - Lower high major trend reversal second entry sell but tight trading range no scalping with stops, doji, lp. Similar to yesterday 9. Can swing but better to wait. Probably buyers at the low of week of the bar and probably scaling in lower
  • Bar 8 - Two bar revresal, double bottom 4, should test 50 high. Possible final flag and fail, failure breakout high of yesterday so might get high of the day soon. Bulls want breakout
  • Bar 10 - Small breakout. Should test 51 high and high of yesterday
  • Bar 13 - Follow through, more up. Stop below 7 double bottom
  • Bar 15 - Wedge 74 2, double top with 60 minimum or minutes high, but 7 bars without bear body so buyers at the low of week of the bar and probably scaling in lower. Bears need second entry sell
  • Bar 18 - Wedge, high of yesterday, second entry sell, but doji and tight channel so sideways more likely than down. Possible final flag. Low probability sell or short. Bears might start to scalp and scale in. Bulls might want to only buy or long lower.
  • Bar 21 - Possible triangle 16 19. Weak bull so possible final flag. Tight trading range no scalping with stops, but late in weak bull so low probability swing. Probably sellers at the high of the bar and probably scaling in higher for final flag
  • Bar 23 - Possible triangle 16 21, always in long, swing buy or long, but low probability since weak channel. Possible final flag
  • [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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