Wednesday price action swings higher: Brooks

Brooks Price Action Analysis for Wednesday, April 2

pending chart 2741

Expanding triangle, exhaustion gap 72 so should trade down early tomorrow, but new all time high and 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 (short in may and go away). Reasonable area to consider buying put spreads here or around 1900 - 1920 for 10% pullback and maybe test 1700 within next few months.

  • Wednesday, April 2, 2014
  • Bar 1 - Fail, failure breakout high of yesterday, big bear bar, but tight channel, possible opening reversal at moving average. Bears need follow through. High of yesterday = all time high = green lint
  • Bar 2 - Opening reversal buy or long but tail, ok swing but probably sell above or sellers at the high of the bar and probably scaling in higher and more sideways
  • Bar 3 - Entry bar but tail, not big. More sideways likely, but always in long
  • Bar 5 - Fail, failure breakout high of yesterday second entry sell, ok swing sell or short. Bulls want buy below or buyers at the low of the bar and probably scaling in lower for breakout pullback buy or long, stop below 2, but higher probability to swing sell or short, stop above 5 or 4
  • Bar 7 - Breakout pullback buy or long but top of tight trading range so low probability. Still on 5 sell or short and 2 buy or long. Breakout mode
  • Bar 10 - Two legged pullback in a bull move buy or long at moving average, but doji, tight trading range, bad for scalping with stop entries unless using swing stop. Breakout mode but ok to go flat and wait. Still on swing sell or short and buy or long
  • Bar 12 - Breakout, need follow through. Bulls want measured move up from double bottom 6 9, bears want wedge 1 4. Trading range likely, like most recent days
  • Bar 14 - Wedge 1 4, possible high of the day so ok swing sell or short, but probably buy below or buyers at the low of the bar and probably scaling in lower for two legs up after breakout from breakout mode
  • Bar 16 - Wedge 1 4, micro double top, strong bear bar, but probably buy below or buyers at the low of the bar and probably scaling in lower for two legs up. Ok swing sell or short but higher probability buy below or buyers at the low of the bar and probably scaling in lower
  • Bar 17 - Breakout pullback buy or long for two legs up, but doji, tight trading range so possible more sideways first
  • Bar 20 - Wedge second entry sell, but probably buy below or buyers at the low of the bar and probably scaling in lower and two legs up so swing sell or short or wait
  • [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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