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 classic case of polarity at work. Former resistance turned into support once again and now prices are breaking out decisively above the downtrend line from their former highs.
Click on chart to enlarge view.
I don’t love using trendline support/resistance for risk management levels, so I’d be erring on the long side of this chart as low as prices are above their post-failed breakdown lows.
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.