Price action gaps higher on Tuesday: Brooks

Brooks Price Action Analysis for Tuesday, April 1

pending chart 2740

New all time high. Should test 1900 resistance levels soon (top of weekly channel, measured move tgts) within next week or two, but then probably will begin 2-3 months down to bottom of weekly channel (�s in may and go away�). End of quarter so bull bias. Reasonable area to consider buying put spreads here or around 1900 - 1920 for 10% pullback and maybe test 1700 within next few months.

  • Tuesday, April 1, 2014
  • Bar 1 - Gap up above 60 minimum or minutes right shoulder, bull body, so ok swing buy or long but small bar. Green line = all time high
  • Bar 2 - Bear reversal bar, ok swing sell or short but still on 1 buy or long
  • Bar 3 - Breakout pullback buy or long but tight trading range so probably bull leg in trading range. Still always in long but near top of channel
  • Bar 4 - Breakout, probably measured move up
  • Bar 6 - Breakout pullback buy or long, always in long, all time high just above, ok buy or long. Low probability sell or short since trend from the first bar bull
  • Bar 8 - Microwedge 2 5 just below all time high, fail, failure breakout channel, possible high of the day, but 8 bars without pullback so more likely buy below or buyers at the low of the bar and probably scaling in lower. Low probability sell or short
  • Bar 12 - Tight trading range, bad for scalping with stop entries unless using swing stop, but always in long
  • Bar 13 - Fail, failure breakout high of yesterday second entry sell, but always in long, tight trading range, more sideways likely, low probability sell or short
  • Bar 14 - Two legged pullback in a bull move but tight trading range, bad for scalping with stop entries unless using swing stop, better to wait. Might get bear breakout and measured move down or high of the day
  • Bar 16 - Big bear breakout, probably more down, but need follow through, else trading range day. Might test bottom of channel by going sideways to down
  • Bar 17 - Follow through, but doji at moving average. Probably more down but trading range day so far and might test 16 high
  • [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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