Tuesday price action chops sideways: Brooks

Brooks Price Action Analysis for Tuesday, April 8

pending chart 2761

Strong reversal after breakout below bottom of trading range. Probably two legs up on 5 minute chart tomorrow, but then probably two legs down on 60 minute chart soon. Weekly sell or short triggered so possible high of next several months. Probably will test bottom of weekly channel (�short in may and go away�) and possible 1700 within next few months. Reasonable area to consider buying put spreads or on bounce, possible to 1870, for 10% pullback.

  • Tuesday, April 8, 2014
  • Bar 1 - Higher low major trend reversal but outside up bar, 4 dojis, so swing or wait. Target below = pink line = bottom of 60 minimum or minutes trading range
  • Bar 2 - Bull follow through, always in long, stop below 1. Trendline and 15 minute 20 bar moving average plotted on a 5 minute chart just above
  • Bar 3 - Or 15 minute 20 bar moving average plotted on a 5 minute chart and trendline, double top 72, but 2 bull bars so probably buy below or buyers at the low of the bar and probably scaling in lower. Better to wait since magnet below low of the day. Ok swing sell or short. Trading range since 34
  • Bar 5 - Higher low major trend reversal double bottom but doji, trading range so low probability and more trading range likely. Not high enough probability unless swing stop and scale in to scalp. Trading range, big bars, better to wait for a strong bull breakout or second entry buy or better to wait for a strong bear breakout or second entry sell
  • Bar 6 - Breakout pullback sell or short but bottom of trading range, probably limit order market, sellers scaling in above, buyers below, both scalping, better to wait. Breakout mode
  • Bar 10 - Breakout pullback sell or short, close on low, might get breakout below low of yesterday and bottom of 60 minimum or minutes trading range = pink like
  • Bar 11 - Breakout, more down but just above target so might reverse up soon since had bull breakout above 60min microchannel yesterday
  • Bar 12 - Bear follow through but hit target so might bounce. Probably limited downside since bottom of 60 minimum or minutes trading range
  • Bar 13 - Two legged pullback in a bull move 1, expanding triangle 34 62, fail, failure breakout low of yesterday, big bull bar. Ok swing buy or long but big down, big up so sideways likely. Possible low of the day
  • Bar 16 - Lower high, but always in long after strong reversal so buy below or buyers at the low of the bar and probably scaling in lower and probably buy above or buyers above, but trading range. Bears see as lower 9, but low probability sell or short
  • Bar 17 - Breakout, but tail. Possible measuring gap
  • [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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