From the desk of Steve Strazza @sstrazza and Louis Sykes @haumicharts
New Mystery Chart!
For those new to this 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.
First things first… we’re looking at a strong primary uptrend. This is illustrated by price stair-stepping higher, from the lower left to the upper right of the chart.
Since breaking above the former resistance line shown on the chart, the trend has been more or less a hot mess with price chopping sideways in a sloppy range.
Although, following a failed breakdown at this key level of interest, buyers appear to have taken control and pushed price back toward its record highs.
The last time we were up here, things didn’t end well. The rally gave out from beneath and price collapsed lower in drastic fashion.
So, the question now is simple… How will price react now that it’s back at the scene of the crime..?
Will buyers have enough fuel to overpower sellers in which case we finally get a decisive move higher?
Or will this be a repeat of last time whereby sellers step in and reject this retest of the highs?
We want to know how you are seeing this chart and what you would do here.
Let us know your thoughts!