Friday price action sinks from open: Brooks

Brooks Price Action Analysis for Friday, March 21

pending chart 2712

Big bear reversal day, double top on daily, but still targets above. Sell climax today so should reverse up mon or tues, but market is in an area that might be high for several months and it can turn down at any day. Still might move to new all time high within 1-2 weeks to test weekly targets around 1900 (top of weekly channel, measured move) for possible high of next several months. Then, should test 1700 within next few months. Reasonable area to consider buying put spreads for 10% pullback.

  • Friday, March 21, 2014
  • Bar 1 - Gap above 60min double top neck line = pink line, strong bull bar, always in long, ok swing, but bull breakout above bull channel so 67% chance will reverse down to bottom of channel. All time high = green line
  • Bar 2 - Strong bear bar, ok swing sell or short, but big up, big down so confusion and sideways
  • Bar 3 - Double bottom 1 but doji, big up, big down so trading range likely. Ok swing buy or long, ok swing sell or short
  • Bar 6 - Close on low, 5 consecutive bear bars, should test bottom of channel, ok swing sell or short
  • Bar 8 - Bear breakout but testing moving average and breakout point = pink line = 60 minimum or minutes double top. Bears neew follow through, but still should test bottom of channel
  • Bar 10 - Two inside bars, close on low, ok swing sell or short for test bottom of channel but low probability. Lots of two-sided trading so might form low of the day at moving average.
  • Bar 12 - Wedge 1 8, wedge 8 10, two inside bars final flag, at moving average and 1t gap above top of 60 minimum or minutes double top, but bear body, trendline magnet below so better to wait for a strong bull breakout or second entry buy
  • Bar 15 - Early trend up, higher highs, higher lows, high closes. Might get bull breakout soon. Open of day = middle of day so possible doji day
  • Bar 16 - Breakout but small so probably trading range. More up
  • Bar 17 - Follow through but tail
  • Bar 19 - Double top 4 top of bear channel but 7 consecutive bull bar microchannel so always in long, buy below or buyers at the low of the bar and probably scaling in lower, stop below 12. Should hit bottom of channel
  • [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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