From the desk of Tom Bruni @BruniCharting
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. It can even be inverted or a custom index.
The point here is to not guess what it is, but instead think about what you would do right now. Buy, Sell, or Do Nothing?
To me this looks like a retest of a massive base breakout. Long-term ranges like this create a lot of pent up energy, so when they do ultimately resolve themselves, they tend to spark sizeable moves in that direction.
Click on chart to enlarge view.
The bigger the base, the higher in space is how I learned it. I’m a buyer of this pullback, 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.