From the desk of Steven Strazza @Sstrazza and Grant Hawkridge @granthawkridge
Check out our latest Mystery Chart!
What we do here is take a chart that’s captured our attention, and remove the x and y-axes as well as any other labels that could help identify it.
This chart can be of any security, in any asset class, on any timeframe. Sometimes it’s an absolute price chart, other times it’s on a relative basis.
It might be a ratio, a custom index, or maybe the price is inverted. It could be all three!
The point is, when we aren’t able to recognize what’s in front of us, we put aside any biases we may have and scrutinize the price behavior objectively.
While you can try to guess the chart, the point is to make a decision…
So, let us know what it is… Buy, Sell, or Do Nothing?
Here’s this week’s chart:
So, there is no denying sellers have been in control for a while now…
With that said, momentum has transitioned to a bullish regime and is currently in overbought territory yet again. This supports the new highs we continue to see, and would go a long way in terms of validating a breakout above the downtrend line… If and when we get it!
So this week our question is simple:
Do buyers finally have the momentum to win out here and break above this downtrend line?
Or is there still enough supply at this level to act as resistance and reject prices as sellers have done in the past.
And as always we can just sit on our hands and wait for more information too!
Are you buying, selling, or waiting?
Be sure to check back later in the week to find out why this chart is relevant.
In the meantime, we want to know what you think about it!