Mystery Chart (04-28-2020)
Here’s this week’s chart.
Click on the chart to enlarge view.
Today we're looking at a long-term downtrend which is trying to regain its footing at key former lows.
Momentum has been stuck in a bearish range for some time but there is a long-term bullish divergence in place. We saw similar divergences form the last two times price was at this level, both of which resulted in significant price reversals.
The long-term moving average has also started to flatten and turn higher just as it did during prior bottoms at this level (see blue arrows).
Lastly, price just confirmed a short-term double-bottom pattern by breaking above its most recent high.
Despite all these positives we need to keep in mind that the more times a level is tested the more likely it is to break, and these former lows have already been tested more than a handful of times.
So, which is it...
Is the bottom in and we're about to get a sustained trend reversal?
Or does this chart roll back over and give sellers another chance to take out these key lows?
Let us know what you think!
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