Thursday price action sinks: Brooks

Brooks Price Action Analysis for Thursday, March 27

pending chart 2732

60 minute double top and head and shoulders top, but end of quarter so bull bias. However, building selling pressure on daily chart and top of next few months might already be in. Reasonable area to consider buying put spreads here or around 1900 for 10% pullback. Might get 1 more push up 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.

  • Thursday, March 27, 2014
  • Bar 1 - I leave at 10:30 today and all week. Yesterday ended always in short but in consecutive sell climax so probably will get early approx. Ten bar, two-legged correction sideways to up bull reversal. Target below = pink line = 60 minimum or minutes neckline of head and shoulders top and double top. Less likely, strong bear trend day and breakout below 60 minimum or minutes head and shoulders top
  • Bar 2 - Breakout, more down
  • Bar 3 - Consecutive sell climax, biggest breakout of entire leg down so possible exhaustion gap. Fell below tw trend channel line so might reverse soon for low of the day
  • Bar 4 - Parabolic wedge 72 79, fail, failure bear breakout below bear channel so target top of channel, but tail and not down to 60 minimum or minutes double top neckline so low probability. Ok swing buy or long but better to wait for a strong bull breakout or second entry buy
  • Bar 5 - Gap, 2 bull bars, possible low of the day, ok swing buy or long
  • Bar 6 - 1t body but higher close. Buy below or buyers at the low of the bar and probably scaling in lower. Probably always in long
  • Bar 7 - Breakout, always in long for measured move up, buy below or buyers at the low of the bar and probably scaling in lower
  • Bar 8 - Big breakout above moving average so possible exhaustion gap. Should work higher. Buy below or buyers at the low of the bar and probably scaling in lower
  • Bar 9 - Double top 1, moving average, but strong reversal so two legs up likely. Buy below or buyers at the low of the bar and probably scaling in lower, stop below 4 8 or 7. Low probability sell or short. Might enter tight trading range for higher low major trend reversal
  • Bar 10 - Breakout pullback buy or long but just below targets so better to scalp or wait to buy or long pullback. Better to not sell or short since low probability and need stop above 67
  • Bar 11 - One bar final flag at trendline, moving average gap bar, but doji, two legs up likely after pullback. Better to buy or long pullback. 1st pullback in microchannel so buy below or buyers at the low of the bar and probably scaling in lower, but possible tight trading range
  • [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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