Mystery Chart 12-03-2019

JC Parets
December 3, 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.

Click on chart to enlarge view.

As we can see, prices have been in a strong downtrend with momentum in a bearish range, but it's been diverging for a while as prices built a base. Speaking of prices, they've failed to reach their downside objective at the 261.8% Fibonacci extension of its mid-downtrend consolidation, offering another signal that sellers are becoming exhausted.

These developments have been in play for a bit, but now we have the final, and most important, piece of the puzzle. Prices are breaking above their downtrend line and attempting to make their first higher high.

That confirms the supplemental improvements we've been watching and suggests this is the early stages of a bearish to bullish trend reversal.

I like it, but what do you think?

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

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