Mystery Chart (09-15-2021)

Steve Strazza
September 15, 2021

From the desk of Steven Strazza @Sstrazza

*** Click here to read the reveal post for this Mystery Chart ***

Check out our latest Mystery Chart!

What we do here is take a chart that’s captured our attention and remove the x and y-axes as well as any other labels that could help identify it.

This chart can be any security, in any asset class, on any timeframe. Sometimes, it’s an absolute price chart. Other times, it’s on a relative basis.

It might be a ratio, a custom index, or maybe the price is inverted. It could be all three!

The point is, when we aren’t able to recognize what’s in front of us, we put aside any biases we may have and scrutinize the price behavior objectively.

While you can try to guess the chart, the point is to make a decision…

So let us know what it is: Buy, Sell, or Do Nothing?

Here’s this week’s chart:

The first thing that stands out on the chart is that price is hanging out near the upper bounds of a massive consolidation.

Price has been building out a base for some time now, as buyers continue to absorb more and more supply at those former highs.

We’ve already seen the breakout level tested at least five times. As we like to say here at All Star Charts:

The more times a level is tested, the more likely it is to break.

However, despite the bullish momentum regime remaining intact (as measured by the 14-period RSI), momentum has definitely been waning.

In addition to that, we cannot ignore the potential bearish divergence, which has still yet to confirm.

So, the questions this week are simple:

Have we already absorbed all the overhead supply at the upper end of this base? Under this scenario, we’re likely to see an upside resolution soon.

Or will sellers defend this level once again? If price even makes it back there, that is...

Let us know what YOU are doing: Buying, Selling, or Sitting It Out?

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

And, as always, check back in later to find out why this chart is relevant.

Allstarcharts Team

*** Click here to read the reveal post for this Mystery Chart ***

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