Brooks: Stock market may have broken out of triangle top

Brooks Price Action Analysis of Tuesday, Sept. 3

pending chart 2300

Gap up, lower high major trend reversal, bear breakout of possible triangle top, trending trading range day, final flag, h4

  • Tuesday, September 3, 2013
  • Bar 1 - Gap up, island bottom of daily, bullish seasonal thru 9/5, should test 8/26 high, then more down. Always in long but tail and not big bar so sideways likely. Swing buy or long but better to wait.
  • Bar 2 - Fail, failure breakout, but doji. Swing sell or short but better to wait. Bulls should win for a few days so should test below red line = neckline of 60 minimum or minutes double bottom, but stay above pink line = bottom of gap on daily.
  • Bar 8 - 7 bars down, sellers at the high of the bar and probably scaling in higher
  • Bar 9 - Lower high major trend reversal but only 1 bar up
  • Bar 12 - Wedge 1 7, two bar revresal, but small. Ok swing buy or long but higher probability to wait
  • Bar 17 - Double top 9, possible triangle 1 9, but trading range. Probably trending trading range day. Low probability swing sell or short
  • Bar 18 - 2 bear bars, trading range, sellers at the high of the bar and probably scaling in higher
  • Bar 21 - Possible triangle 9 16, bear channel, swing sell or short. Better to wait for breakout
  • Bar 22 - Strong breakout, more down, probably trending trading range day
  • Bar 23 - Close near low, more down
  • Bar 24 - More down, but sell climax to 60 minute 20 bar exponential moving average so might go sideways
  • [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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