Mystery Chart (09-16-2020)

Steve Strazza
September 16, 2020

From the desk of Steve Strazza @Sstrazza

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.

We're looking at a nice base trying to resolve above overhead supply at its prior highs.

Click on chart to enlarge view.

The recent V-shaped rally was sparked by a failed breakdown, but momentum has cooled off of late and price has failed its first test of resistance.

This brings us to today, where we're once again back to the scene of the crime.

Do we break out this time, and want to be buying this chart in anticipation of it?

Do we think price has moved too far too fast and prefer to be on the sidelines, awaiting another potential failure and further consolidation?

Or, do we think the momentum divergence is enough of a concern to sell this, especially considering such clearly defined risk at current levels?

Tweet me your thoughts @Sstrazza or email me at strazza@allstarcharts.com and check back on Friday to find out why this chart is relevant.

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Allstarcharts Team

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