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JC Parets

[India] Mystery Chart 08-06-2019

August 6, 2019

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?

To us, this looks like a potential bottoming/mean-reversion candidate if prices can accelerate off of support. Momentum is diverging positively and our risk is extremely well-defined, so we'd rather be erring on the long side than the short side.

Click on chart to enlarge view.

Buying with a tight stop is how we'd play it.

What do you think?

Tweet us @allstarchartsIN or email [email protected] and check back in Thursday to find out why this chart is relevant.

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