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. 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?
To me, this looks like a massive bottom forming, with the most recent low starting a move higher back towards the first level of resistance.
Click on chart to enlarge view.
When I first started learning Technical Analysis I saw Craig Johnson present at a CMT meeting where he simplified his analysis down to “we want to be buying smiley faces and selling frowny ones”, which really stuck with me.
I don’t know about you, but this looks like a smiley face if I’ve ever seen one. What do you think?
Tweet me @BruniCharting or email firstname.lastname@example.org and check back in Thursday to find out why this chart is relevant.