Stock indexes see sideways price action at recent highs: Brooks

Brooks Price Action Analysis of Wednesday, July 17

pending chart 2224

Opening Range, higher high major trend reversal, fail, failure breakout high of year, lower high major trend reversal, two legged pullback in a bull move, double top lower high major trend reversal

  • Wednesday, July 17, 2013
  • Bar 1 - Gap up but just below high of year = pink line
  • Bar 3 - Two inside bars, breakout mode, but probably buyers at the low of week of the bar and probably scaling in lower sellers at the high of the bar and probably scaling in higher. Trading range likely since resistance above, support below = 3 mas, 57 top of lower trading range
  • Bar 4 - Bear breakout but tail so probably bear leg in trading range
  • Bar 6 - Or, two bar revresal, test lower trading range, moving average. Possible low of the day, ok swing buy or long, but lt
  • Bar 11 - Breakout pullback buy or long but probably sellers at the high of the bar and probably scaling in higher since just below high of the day and high of yesterday
  • Bar 12 - 7 bars up so probably buyers at the low of week of the bar and probably scaling in lower, despite double top
  • Bar 13 - Breakout pullback buy or long, double bottom 11, but resistance just above so low probability.
  • Bar 14 - Higher high major trend reversal, fail, failure breakout above high of yesterday and high of the day. Ok swing sell or short
  • Bar 16 - 2 bear bars but tails and higher low 5. Always in short but not strong yet
  • Bar 17 - Bear inside bar but weak sell off so more trading range likely. Higher low, breakout pullback buy or long but 3 bear bars so low probability and letter to wait
  • Bar 19 - Lower high major trend reversal but doji and only2 bars up, magnet 15 high above. Might be buyers at the low of week of the bar and probably scaling in lower. Wait
  • [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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