Mystery Chart 11-12-2019

JC Parets
November 12, 2019

From the desk of Tom Bruni @BruniCharting

New Mystery Chart!

For those new to the exercise, we take a chart of interest and remove the x/y-axes and any other labels that would help identify it. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. Maybe it's a custom index or inverted, who knows!

We do all this to put aside the biases we have associated with this specific security/the market and come to a conclusion based solely on price.

You can guess what it is if you must, but the real value comes from sharing what you would do right now. Buy, Sell, or Do Nothing?

To me, this looks like a confirmed failed breakout that leaves prices vulnerable if they're unable to claim resistance soon. In these types of situations, it's clear that we can't be long if prices are below their former highs, but it'll only be clear in hindsight what this failed move develops into.

Maybe it works through this overhead supply over time or maybe prices have to head lower before demand begins to overwhelm supply. Maybe it's a combination of the two. I guess we'll see.

Click on chart to enlarge view.

Like I said last week, I like these types of setups so I'd be looking to sell any strength back towards resistance and see if history repeats itself.

What do you think?

Tweet me @BruniCharting or email bruni@allstarcharts.com and check back in Thursday to find out why this chart is relevant.

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