Mystery Chart 11-19-2019

JC Parets
November 19, 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?

Here's this week's chart.

After a strong trend period, prices corrected through time and price before breaking out again. Momentum's characteristics also support this breakout.

During the asset's first attempt to move higher, momentum was able to get overbought after staying in a bearish regime throughout the correction. That's a great first step, but the second important aspect was that momentum did not get oversold during the price correction and got overbought once again as prices broke the downtrend line.

We saw this pattern play out before the last extensive move, and based on the current conditions, it looks to be setting up for a similar move.

Click on chart to enlarge view.

To me, this looks like the start of this asset's next leg to the upside.

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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