Stock gains continue in Tuesday price action: Brooks

Price Action & Setup Analysis

pending chart 2621

Trend from the first bar bull, fail, failure wedge top, small pullback bull

  • Tuesday, February 11, 2014
  • Bar 1 - Breakout above top of weak bull channel so probably will fail, failure. 1800 magnet above. Trend from the first bar bull, always in long
  • Bar 2 - Follow through but only 1t body. Odds still favor move down to bottom of channel
  • Bar 3 - Breakout, gap, more up
  • Bar 4 - Follow through, but tail. 16t above 1 so probably at least 1t more up. 17t above close of 1 so 4 profit target bulls might have exited
  • Bar 5 - Probability wedge 29 62, but 4 bars up so probably buyers at the low of the bar and probably scaling in lower, but possible high of the day. Might be sellers at the high of the bar and probably scaling in higher
  • Bar 8 - Breakout pullback buy or long but tight trading range so possible sellers at the high of the bar and probably scaling in higher. Ok swing buy or long
  • Bar 13 - Breakout pullback buy or long but 2 dojis, measured move target, possible wedge top so probably sellers at the high of the bar and probably scaling in higher. Bulls need wide stop and scale in
  • Bar 15 - Wedge 4 12 but 9 bar microchannel so probably buyers at the low of the bar and probably scaling in lower and sideways. Possible high of the day so ok swing, but higher probability to wait for bear breakout
  • Bar 17 - 3 consecutive bear bars so possible always in short
  • Bar 18 - Strong bull reversal bar, breakout pullback buy or long, bears will exit. Ok swing buy or long, but possible sellers at the high of the bar and probably scaling in higher 15 for wedge
  • Bar 20 - Wedge but doji so sideways more likely. Low probability 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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