Analyzing Monday's stock market price action: Brooks

Brooks Price Action Analysis of Monday, July 5

pending chart 2264

Opening Range, wedge top, double top high of yesterday, lower high major trend reversal, High 4

  • Monday, August 5, 2013
  • Bar 1 - Yesterday was wedge top so possible 2 legs sideways to down. Small doji so 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. From my weekend youtube video, i think high of year coming within weeks
  • Bar 4 - Or, fail, failure breakout 62 but doji so low probability buy or long. Swing or wait. Since buyers at the low of week of the bar and probably scaling in lower 1, probably ba
  • Bar 6 - Consecutive bull bars, always in long, but small bars, tails so weak. Most should wait
  • Bar 7 - Only 1t bear body, buyers at the low of week of the bar and probably scaling in lower
  • Bar 9 - 7 bars up, doji, buyers at the low of week of the bar and probably scaling in lower
  • Bar 12 - Bull inside bar but better to scalp since weak rally and might form lower high
  • Bar 14 - Bull inside bar, 16t above 4 so probably at least 1-2t more, but odds favor 2nd leg down from yesterday wedge top so probably sellers at the high of the bar and probably scaling in higher
  • Bar 16 - Wedge top 1 9, double top high of yesterday, but 1t bear body so low probability. Ok to exit longs. Wait to sell or short, but might be always in short below
  • Bar 18 - 3 consecutive bear bars but 1t body so not strong sellers at the high of the bar and probably scaling in higher. Sideways likely, but ok math for swing sell or short, stop above 15
  • Bar 21 - Possible triangle 14 18, but tight trading range no scalping with stops. Probably sellers at the high of the bar and probably scaling in higher
  • Bar 24 - Lower high major trend reversal after double top wedge high of yesterday, close on low, ok swing sell or short
  • [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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