Mystery Chart (07-07-2020)
If you read my posts regularly, this one should be no surprise. Big bases resolving into empty spaces are my favorite chart patterns. This week's Mystery Chart is a great example of just that...
Click on chart to enlarge view.
But first, we need to see a sustained breakout. And how about that momentum divergence? Similar divergences helped signal significant peaks in the past. Is this time different?
Here are some of the things I'm focused on with this chart:
- While the primary trend is higher, price has gone absolutely nowhere since its inception.
- After breaking out of a major base, we're once again retesting all-time highs. The way I learned it is there's no such thing as a triple top.
- While it may look like a potential bearish momentum divergence, price is yet to make a new closing high, so it's actually not for now.
- The recent rally was propelled by a slight failed breakdown as price undercut its prior lows before launching higher. We love these patterns as well.
So the question that remains is simple...
Do we finally eclipse the former all-time highs and run higher, giving us a clear level to define our risk against?
Or is the current rally running out of steam and likely to correct through either price or time here?
We want to know what you would be doing with this chart right now... buying, selling, or waiting for more information?
Check back at the end of the week to find out what we think and why this chart is relevant.
Tweet me your thoughts @Sstrazza or email me at Strazza@Allstarcharts.com.
In the meantime, check out this FREE preview of our new Charting School course to learn more about some of the Technical Analysis concepts we discuss in our posts.
Allstarcharts Team