Prices action slides then recovers on Thursday: Brooks

Brooks Price Action Analysis for Thursday, April 4

pending chart 2750

Bounce off 60 minute 20 bar exponential moving average and should get two legs up tomorrow. 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�) for possible test of 1700 within next few months. Reasonable area to consider buying put spreads here or around 1900 - 1920 for 10% pullback.

  • Thursday, April 3, 2014
  • Bar 1 - Fail, failure breakout high of yesterday and top of channel but big tail so probably buy below or buyers at the low of the bar and probably scaling in lower sell above or sellers at the high of the bar and probably scaling in higher. Wait. Top of 60 minimum or minutes and weekly channels just above so might get buy vacuum test with bull breakout of bull channels, and then reversal down
  • Bar 2 - Doji inside bar at high of yesterday so probably sell above or sellers at the high of the bar and probably scaling in higher buy below or buyers at the low of the bar and probably scaling in lower
  • Bar 3 - 3 dojis, room to moving average so probably test down but better to wait
  • Bar 5 - Two legged pullback in a bull move but 5 dojis so sideways likely
  • Bar 7 - Double top 3, possible high of the day but doji so low probability
  • Bar 9 - Wedge 1 5 but possible trap since 2t tail, big 8, and top of wedge
  • Bar 11 - Breakout pullback sell or short, ok swing
  • Bar 12 - Breakout but need follow through
  • Bar 13 - Bear body, more down, stop above 11. Bars not big so possible bear leg in trading range
  • Bar 14 - More sell the close but small bars, at measured move. If sell or short, need wide stop and scale in, swing of scalp . Might bounce here
  • Bar 15 - Fail, failure breakout but sell above or sellers at the high of the bar and probably scaling in higher wide stop and scale in, swing of scalp for two legs down. Better to wait for a strong bull breakout or second entry buy
  • [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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