From the desk of Tom Bruni @BruniCharting
This week we’re back with another Mystery Chart.
For those new to the exercise, we take a chart of interest and eliminate the x and y-axes and and all labels eliminated to minimize bias. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. It can even be inverted or a custom index.
The point here is to not guess what it is, but instead to think about what you would do right now. Buy, Sell, or Do Nothing?
For me this week’s chart comes down to what timeframe you’re talking about. In the short-term I could see prices bouncing and establishing a range between the upper and lower bands of support, but structurally that failed breakout is a problem.
We got the “fast move” in the opposite direction, now does that continue or can prices find their footing and work it off through time?
Click on chart to enlarge view.
This is one of the most important charts I’m watching right now, so I’m curious to hear your thoughts.
Tweet me @BruniCharting or email firstname.lastname@example.org and check back in Thursday to find out what this chart is and why it’s relevant.