Friday's price action sees breakout failure, reversal: Brooks

Brooks Price Action Analysis of Friday, Oct. 25

pending chart 2385

Fail, failure breakout top of channel, lower high major trend reversal, big two legged pullback in a bull move,

  • Friday, October 25, 2013
  • Bar 1 - 2 day weak bull channel, which is unusual so should breakout up and or down today, and odds favor down since a bull channel is usually a bear flag. Bull bar but probably sellers at the high of the bar and probably scaling in higher since bull breakout above bull channel and usually fail, failure
  • Bar 3 - Dojis, tight trading range, 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
  • Bar 5 - Bull inside bar but tight trading range no scalping with stops and probably sellers at the high of the bar and probably scaling in higher since top of overdone channel. Only buy or long if strong breakout
  • Bar 8 - Fail, failure breakout top of channel and lower high from last week. Trading range pa when 2 resistance levels above and market turns down after breakout of lower line
  • Bar 9 - Always in short for test bottom of channel. Bears want lower low below 76, bulls want more higher highs and higher lows
  • Bar 14 - Breakout pullback sell or short but bull bar at 15 minute 20 bar moving average plotted on a 5 minute chart, which was support yesterday probably buyers at the low of week of the bar and probably scaling in lower for bounce
  • Bar 16 - Micro double bottom but probably sellers just below 8. 16t down so should hit at least 17t after bounce, and trendline below
  • Bar 18 - Lower high major trend reversal but tight trading range and target above so might be buyers at the low of week of the bar and probably scaling in lower
  • Bar 21 - Higher low in bull channel, db15, but tight trading range no scalping with stops and always in short so low probability buy or long and probably sellers at the high of the bar and probably scaling in higher with stop above7 or 8
  • Bar 27 - Lower high major trend reversal, two legged pullback in a bear move 18 but doji sellers below or signal bar so low probability sell or short and probably need stop above 7
  • Bar 28 - Bear breakout, more down
  • [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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