The Mystery Chart in a Huge Range

On Tuesday I posted a mystery chart and asked readers what they would do. This is always a great study because we're forced to decide without the preconceived notions that come with knowing what it is. I got some great responses, but generally they were short the break down with a stop back above, or buy this support with a stop below. Like last time, it's really nice to see a risk management process along with the decision making.

This was actually a weekly bar chart of a Colombian bank - Bancolombia $CIB - I would have to agree with readers that the decision is either to buy these lows with a stop below, or short the breakdown with a stop above. I would add that buying it with a stop could be a great flip short to the downside if/after you get stopped out. Just throwing that possibility out there. Some of our best trades historically have actually come when we've been wrong, and then flipped it. In fact, some of the biggest trades I've ever missed is when I've been wrong, been stopped out, and NOT flipped it. I can name a million of those.

Here's $CIB weekly bars:

Interesting chart right? Regional bank, but within serial underperformer Latin America...