From the desk of Steven Strazza @Sstrazza
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 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:
The first thing to notice here is that price just pierced through the upper bounds of a big basing pattern.
The next thing that stands out is the waning momentum that’s accompanied the recent breakout to fresh highs.
We’ve been seeing both breakouts and breakdowns fail as the market continues to be a mess this year.
So, is this just another failed breakout?
Or are these new highs here to stay?
Let us know what you are doing: Buying, Selling, or Sitting It Out?
Tweet me at @Sstrazza or shoot me an email to firstname.lastname@example.org.
And, as always, check back in later to find out why this chart is relevant.