Mystery Chart 03-12-2019

JC Parets
March 12, 2019

This week we're back with another Mystery Chart.

For those new to the exercise, we take a chart of interest and eliminate the x and y-axes and and all labels eliminated to minimize bias. The 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?

Here's how we see it.

Prices have found support at its long-term lows lows as momentum diverged, with prices reclaiming more recent support shortly after. These short-term improvements are noteworthy and suggest not being short above this long-term low, however, the downward-sloping 200-period moving average suggests the trend is still lower (or sideways at best).

Click on chart to enlarge view.

A neutral/bullish approach seems best at current levels, though buying weakness down toward the first support outlined in gray is more attractive than buying at current levels.

If it was just one chart that looked like this then there would be no issue, but we're seeing quite a few with similar patterns, especially in the small and mid-cap space.

So was that the final low, or is this simply a counter-trend rally that will be sold into like all the rest?

That's the unanswered question...

We're stumped, so let us know what you're thinking.

Tweet us @allstarchartsIN or email bruni@allstarcharts.com and check back in Thursday for the big reveal!

If you enjoyed this post and want more content like this, consider joining our community by starting a 30-day risk-free trial or signing up for our "Free Chart of the Week".

Filed Under