Thursday price action trends sharply lower: Brooks

Brooks Price Action Analysis for Thursday, March 13

pending chart 2688

Big sell climax so probably bounce tomorrow, but strong enough trend so more down over next day or two. In the sell or short zone on weekly chart so ok to consider put spreads, but a little more up possible since targets around 1888 for possible high of next several months, and then a test below 1700.

  • Thursday, March 13, 2014
  • Bar 1 - Gap up, resistance above, support below, so buy below or buyers at the low of the bar and probably scaling in lower sell above or sellers at the high of the bar and probably scaling in higher
  • Bar 2 - Sell above or sellers at the high of the bar and probably scaling in higher 1 so sell below or sellers below or signal bar 2 for scalp.
  • Bar 4 - Two legged pullback in a bull move but middle of trading range, 2t tail. Trading range pa for 2 weeks so probably will fall below support = high of yesterday so always in short
  • Bar 6 - Wedge 1 3 but tail, tight channel, trading range pa and support below so probably sell above or sellers at the high of the bar and probably scaling in higher. Breakout mode. Weak channel so stop entries are low probability
  • Bar 10 - Opening reversal, h4, test high of yesterday, but 3t tail, tight channel so low probability. Ok swing buy or long for low of the day. Higher probability to wait for strong breakout. Bears selling above bars since channel.
  • Bar 11 - Breakout pullback sell or short in bear channel, but bears need breakout below 9 since possible low of the day. If so, might get measured move down
  • Bar 13 - Two legged pullback in a bear move but tight trading range. If falls below 9, probably measured move down
  • Bar 14 - Breakout, possible measuring gap. Tail, so lower probability
  • Bar 15 - Gap, more down
  • Bar 16 - Big bear bar so sell climax, bottom of channel, so might bounce, but probably then two legs down. Bears will sell the close and sell above or sellers at the high of the bar and probably scaling in higher
  • Bar 17 - Breakout pullback buy or long after sell climax so possible buy below or buyers at the low of the bar and probably scaling in lower and sideways. Swing stop above 14 15 or 16. Should test 74 low since double bottom yesterday, but then might stay in yesterday trading range for long time since trading range at this level yesterday
  • [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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