From the desk of Steve Strazza @Sstrazza
New Mystery Chart!
For those new to this 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?
Here’s this week’s chart. Since breaking out of a bullish basing pattern recently price is making an explosive move higher.
Click on chart to enlarge view.
Momentum is in a bullish regime and RSI just printed its highest reading in history, confirming the new all-time highs.
With that said, price is extended in the short-term and due for some digestion of its recent gains.
A correction through time or price is not just likely, but it would be healthy considering the strength of this rally.
Looking out past the next few weeks, would you want to be buying, selling, or doing nothing with this chart?
Let us know what you think!
Tweet me your thoughts @Sstrazza or email email@example.com and check back at the end of the week to find out why this chart is relevant.If you enjoyed this post and want access to our premium research, start your 30-day risk-free trial or sign up for our “Free Chart of the Week” to receive more free research like this.