Price action analysis of Monday's gap higher in the stock market: Brooks

Brooks Price Action Analysis of Monday, Dec. 9

pending chart 2439

Fail, failure breakout high of yesterday second entry sell, double bottom or, double top major trend reversal, possible triangle top, lower high major trend reversal

  • Monday, December 9, 2013
  • Bar 1 - Gap up but tail 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
  • Bar 3 - Or test of high of yesterday, microwedge but 3 bear bars so probably more sideways
  • Bar 6 - Big bull bar, new high of the day, all time high = pink line = magnet just above, but need follow through
  • Bar 7 - Fail, failure breakout high of yesterday second entry sell, ok swing sell or short for possible high of the day, but tail so probably buyers at the low of week of the bar and probably scaling in lower
  • Bar 9 - 2 pullback bars so might be high of the day. Need more down to flip to always in short
  • Bar 10 - Small bear breakout, 4 bars down, probably always in short, but need breakout up and or down
  • Bar 11 - Another bear bar. Always in short, ok to sell or short for any reason, stop above 7 so trade small or wait for pullback
  • Bar 13 - Double bottom or test of gap and moving average, test gap high of yesterday, reversal bar, but 7 bars down so low probability buy or long and still always in short
  • Bar 15 - Breakout pullback sell or short but at moving average and holding gap so low probability. Swing or wait
  • Bar 18 - Lower high major trend reversal, breakout test or bought 7, two legged pullback in a bear move, ok swing sell or short, but middle of trading range day so not high enough probability for scalp. Bulls want channel up to all time high
  • Bar 19 - Breakout pullback buy or long. Probably always in long for test all time high, but middle of trading range day so lower probability
  • [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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