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?
Here’s this week’s chart.
Click on chart to enlarge view.
Prices of this asset had gone nowhere for a long time and recently broke down below support, beginning a new downtrend. Momentum has yet to confirm this move by breaking down into oversold territory, but it’s hard to argue with prices that are accelerating to the downside.
For now, we want to be fading any and all strength towards former support with a price objective at the 161.8% Fibonacci extension of its pre-breakdown range.
I like it on the short side, but what do you think?
Tweet me @BruniCharting or email email@example.com and check back on Thursday to find out why this chart is relevant.