Mystery Chart (04-07-2020)
Here’s this week’s chart.
Click on the chart to enlarge view.
Similar to last week's Mystery Chart, we're looking at another long-term downtrend. The major difference is that last week we saw prices bounce off support while in the chart above, potential support was just violated.
Price has made lower highs and lower lows since its initial peak and just broke down further, undercutting its most recent lows.
Momentum is in a bearish regime and prices are below multiple levels of strong overhead supply, making anything more than a counter-trend move unlikely.
But, momentum is also printing a potential bullish divergence as the RSI-14 just made a higher low despite the lower low in price.
So, this is likely to go one of two ways in our opinion...
- An epic failed breakdown in which case prices rip back above their prior lows and confirm the momentum divergence.
- A sustained breakdown in which case we are likely to see follow-through towards record lows.
Which one do you think it is?
Tweet me @Sstrazza or email me at strazza@allstarcharts.com and check back on Thursday to find out why this chart is relevant.
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Allstarcharts Team.