Mystery Chart (06-15-2021)

Here’s this week’s chart:

The first thing that stands out on the chart is that after a period of consolidation, price action resolved to the upside from a big base. So, there is no doubt that we are looking at a primary uptrend.

The next characteristic that catches our eye is that after a big gain, price began to stall out just after reaching our objective at the 161.8% Fibonacci extension of the previous drawdown.

This is illustrated by momentum, measured by RSI-14, showing a bearish divergence at the recent price peak, and then confirming this divergence through price. But it didn't end there... Price carried on lower and momentum followed, with RSI-14 recently falling into oversold conditions and shifting back into a bearish momentum regime for the first time in a while.

So this week our question is simple:

Will buyers have the power to push this back above our risk level, resulting in a bull-hook and continuance of the underlying uptrend?

Or is there too much supply at play at this level and we're looking at the early stages of a valid breakdown?

And as always we can just sit on our hands and wait for more information too!

Are you buying, selling, or waiting?

Be sure to check back later in the week to find out why this chart is relevant.

In the meantime, we want to know what you think about it!

Tweet me at @Sstrazza or shoot me an email at strazza@allstarcharts.com.

Allstarcharts Team