From the desk of Tom Bruni @BruniCharting
New 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?
After breaking out of a nice base, prices quickly pulled back from their highs to former resistance turned support. Despite several attempts, prices were unable to accelerate to the upside to retest those former highs. Instead, they are now failing their third retest and breaking to the downside.
Click on chart to enlarge view.
What looked like a clear long-term bottoming pattern has failed and prices look poised to settle back into their longer-term range.
I’d be exiting any long positions and shifting toward a neutral/bearish bias as prices break to these new lows, but let me know what you’d do here.
Tweet me @BruniCharting or email firstname.lastname@example.org and check back in Thursday to find out why this chart is relevant.