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JC Parets

Mystery Chart 12-17-2019

December 17, 2019

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 broken out of a long-term base and are now retesting the breakout area, which also corresponds with a rising 200-day moving average (if you're into that kind of thing).

It's also interesting that while prices have pulled back, momentum has managed to stay out of oversold territory...despite a few close calls recently.

So what do you think, we buying this breakout retest or is it a massive failed breakout?

Tweet me @BruniCharting or email [email protected] and check back on Thursday to find out why this chart is relevant.

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