Mystery Chart (05-26-2020)

Steve Strazza
May 26, 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.

We're looking at a nice long-term uptrend that continues to stair-step higher and consolidate constructively at its Fibonacci extensions along the way.

Click on chart to enlarge view.

Price just ripped through our latest price objective at the 423.6% extension and is currently trading at fresh all-time highs. Momentum confirmed the recent breakout by shifting back into a bullish regime and printing consistently overbought readings.

Would you be buying this up here or fading the recent strength? Or would you prefer to wait and see if prices throwback and test their prior highs?

Or is it something else? Let us know what you think!

Tweet me your thoughts @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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