Mystery Chart (04-21-2020)

Steve Strazza
April 21, 2020

From the desk of Steve Strazza @Sstrazza

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?

Here’s this week’s chart.

Click on the chart to enlarge view.

In today's chart, we're looking at a parabolic move to all-time highs following a breakaway gap above the downtrend line from prior highs.

Price is consolidating in a flag pattern as it retests potential support at these former highs. The new highs were also confirmed by the highest momentum reading on record.

This one is pretty straightforward.

Do buyers dig in here and defend this key level, in which case this fresh breakout remains intact?

Or will prices fail to hold these new highs, resulting in a bull trap and potential fast move to the downside?

Which one is it? We want to hear from you.

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

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