Mystery Chart 01-22-2019

JC Parets
January 21, 2019

Last week was our first Mystery Chart and Reveal Post of 2019.

This week we're doing that same exercise with a new chart, x and y-axes and and all labels eliminated to minimize bias. As a reminder, this chart can be any security in any asset class on any timeframe on an absolute or relative basis. It can even be inverted or a custom index.

The point here is to not guess what it is, but instead to think about what you would do right now. Buy, Sell, or Do Nothing?

This time we have a clear downtrend in prices that exceeded oor downside price target, then quickly regained support and has been consolidating since. The question now is, does it resolve to the upside or downside?

Click on chart to enlarge view.

Given that the structural trend is still down, I'm leaning toward a downside resolution in the coming weeks, though a neutral approach is best until we get confirmation in the form of a close below support.

So what would you do? Tweet us @allstarchartsIN or email bruni@allstarcharts.com and check back in Thursday to find out what this chart is and why we think it's important.

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