Tuesday price action gaps higher, drifts lower: Brooks

Brooks Price Action Analysis for Tuesday, March 25

pending chart 2719

Bulls are buying every strong breakout so probably will move to new all time high within 1-2 weeks to test weekly targets around 1900 (top of weekly channel, measured move tgt) 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.

  • Tuesday, March 25, 2014
  • Bar 1 - I leave at 10:30 today and all week. Gap up, bit bull bar, but tail, in last week trading range, measured move, better to wait
  • Bar 2 - Strong bear bar, but always in long so probably buy below or buyers at the low of the bar and probably scaling in lower. Low probability sell or short
  • Bar 3 - Breakout pullback buy or long but doji, tight trading range. Probably buy above or buyers above since buy below or buyers at the low of the bar and probably scaling in lower 2, but trading range start and bad for stop entries
  • Bar 4 - Breakout pullback buy or long but doji, probably tight trading range. Possible buy above or buyers above since buy below or buyers at the low of the bar and probably scaling in lower 2, but tight trading range, bad for scalping with stop entries unless using swing stop. Limit order order market so far
  • Bar 5 - Fail, failure breakout 60 minute 20 bar exponential moving average second entry sell but doji, tight trading range, bad for scalping with stop entries unless using swing stop. Better to wait
  • Bar 6 - Two legged pullback in a bull move 3 but tight trading range, bad for scalping with stop entries unless using swing stop, report soon. Better to wait
  • Bar 8 - Outside bar surrounded by inside bars but close at top of tight trading range so low probability
  • Bar 9 - Final flag top, but only 2t body so possible buy below or buyers at the low of the bar and probably scaling in lower for breakout pullback buy or long and then bull channel. Ok swing sell or short for possible high of the day
  • Bar 11 - 3 consecutive bear bars with close in lower half so probably always in short for breakout and measured move down
  • Bar 12 - Fail, failure breakout but always in short, sell above or sellers at the high of the bar and probably scaling in higher for two legs down
  • Bar 13 - Breakout, sell the close
  • [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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