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 an interesting mean reversion candidate as prices respond to support for the fourth time and momentum diverges positively.
I wouldn’t be short, that’s for sure.
Click on chart to enlarge view.
An aggressive long with a stop below the recent low is how I’d play it.
What do you think?
Tweet me @BruniCharting or email email@example.com and check back in Thursday to find out why this chart is relevant.