Wednesday price action gets back some gains: Brooks

Brooks Price Action Analysis for Wednesday, April 9

pending chart 2769

Strong bull breakout of two-day wedge bear flag so measured move up to around 1878 likely and possible to the 1900 top of the weekly channel, which is a reasonable area to consider buying put spreads for pullback to around 1730 bottom of channel within next few months (�short in may and go away�). Might instead form 60 minute lower high major trend reversal.

  • Wednesday, April 9, 2014
  • Bar 1 - Wedge, 60 minute 20 bar exponential moving average, gap up but small doji so probably will close. 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, but should test bottom of channel
  • Bar 3 - Gap, should test support below = bottom of channel, moving average, close of yesterday
  • Bar 5 - Opening reversal, ok swing buy or long for possible low of the day. Higher probability to wait to see if bull breakout. Trendline target below. Still breakout mode, limit order market, sellers scaling in above, buyers below, both scalping
  • Bar 6 - Double top 1, fail, failure breakout high of yesterday second entry sell, but middle of trading range. Swing buy or long or sell or short
  • Bar 9 - Two legged pullback in a bull move, wedge 2 5, bottom of channel, moving average, close of yesterday, possible low of the day so ok swing buy or long, but bear body so lower probability. Higher probability to wait for strong breakout up and or down. Bulls want 60 minimum or minutes close above 60 minute 20 bar exponential moving average, bears want close near low of bar
  • Bar 11 - Consecutive bull bars, probably always in long, but tails, not big bars, need breakout above high of the day. Double top 1 but probably buy below or buyers at the low of the bar and probably scaling in lower so low probability sell or short
  • Bar 12 - Breakout pullback buy or long but top of trading range so low probability and need swing stop below 9. Double top 1 but low probability and probably buy below or buyers at the low of the bar and probably scaling in lower. Always in long
  • Bar 15 - Higher high major trend reversal, wedge 6 11, fail, failure breakout 60 minute 20 bar exponential moving average and high of yesterday second entry sell, but strong 10 11. Ok swing sell or short for high of the day but probably buy below or buyers at the low of the bar and probably scaling in lower. Rally since 28 yesterday looks more like bull leg in trading range than trs so probably will test down to 64 low before two legs up from yesterday rally begins
  • Bar 17 - Two legged pullback in a bull move breakout pullback buy or long but weak bull channel, bears still on swing sell or short. Possible sell above or sellers at the high of the bar and probably scaling in higher. Ok swing buy or long. Need breakout up and or down
  • Bar 20 - Breakout pullback buy or long 10 11, wedge 12 16, fail, failure bear breakout 19, but 4 bars down. Ok swing buy or long but probably sell above or sellers at the high of the bar and probably scaling in higher and more trading range
  • Bar 23 - Lower high major trend reversal but middle of trading range day, breakout mode, low probability up and or down until breakout
  • [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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