Mystery Chart – BUY or SELL??

Is this chart a buy or a sell? For the moment, forget the instrument or market – with a gun to your head, do you go long or short?

Some readers will no doubt recognise this chart. Even so, there is merit in this exercise – there are times when our world view so colours our thinking that we can only see on the chart what we want to see.

Post your buy or sell recommendation in the comments box – and your guess at the market on the chart. Survey results and the name of the mystery chart later.

About michaelmccarthycmc

Chief Market Strategist - CMC Markets and Stockbroking Regular on ABC, BBC, Bloomberg, Channel TEN, CNBC, SBS and SKY
This entry was posted in Commodity, Forex, Market, Shares, Stocks, Trading and tagged , , , , . Bookmark the permalink.

63 Responses to Mystery Chart – BUY or SELL??

    • michaelmccarthycmc says:

      The count so far:
      BUY 16
      SELL 12
      Neutral / trade the break 7

      Nominated instruments:
      EUR/USD
      Australia 200 / XJO / ASX200
      Spot Silver

      • Cindy Me says:

        I say BUY with a stop below the arrow, with a target up towards the upper black line, or three quarters the way up towards there at least! 😉

  1. Steve H says:

    sell with a stop

  2. joan says:

    Buy. no idea what market though

  3. Baden Berry says:

    Sell, is it the ASX200.

  4. Nigel Coates says:

    I love the Mystery Chart idea. Takes away ‘noise’ and ‘expectation’. With a gun to my head – I would Buy 🙂

  5. Greg Bardsley says:

    Consolidating, undecided price pattern. Leave alone now. Buy on break up sell on break down. Looks like XJO

  6. DV4 says:

    Looks like ASX200 daily, possibly in short term 4th wave down, sell on breakdown of current consolidation to support at tails (far left), or possibly wait for retracement up and short term bearish gartley pattern to sell at tail of wave 1 down… if it gets to tails at far left hand side look for reversals long – It is clearly in a range – so best to trade against extremes …

  7. John Greenwood says:

    Given the false support break which is all I can go on…I would Sell

  8. Rob says:

    I would sell at this stage as resistance is becoming stronger.

  9. Darren says:

    Buy, only because i have a long position active wanting to get past 4236

  10. Ian says:

    If one needs to act buy with a close spot as the supports has held

  11. Greg says:

    I see a Pitchfork on lowest; a sl, b furthest sh, c furthest sl = buy

  12. Leo says:

    I’d say a buy long term as there was triple bottom (with false breaks under them)

  13. Zan says:

    This a chart of ASX 200 and in the moment is neutral with range between 4040 and 4150.

  14. Desmond says:

    On the basis of the chart alone, I would BUY given that it appears to be at the bottom of the channel. I would consider the RSI too as a means of determining possible direction – divergence, etc. Risk/Reward may also be a consideration depending on where to put the stops and expected Profit Target.

  15. Tony says:

    I would sell

  16. S says:

    I’d rather not do anything, but with a gun to my head I’d go long with a stop under the previous day’s low. Looks like a trading range at least.

  17. Steve Lin says:

    It looks like a rising wedge with a support line break, and then a reaction rally to test the newfound resistance level. So I think It is bearish. – SELL with stop above recent peak.

  18. Barry Seeger says:

    I say Buy, because it’s still in a trading range, and there is more scope to the upside within that range. However, I want to see it break that short-term resistance line first.

  19. Martin says:

    I guess I would go with momentum, downward trend so I would SELL.

  20. George says:

    Sell with stop to protect capital

  21. Daniel says:

    Buy – chart has higher lows and higher highs each side of the channel

  22. Ali wibowo says:

    With a gun to my head, it’s definitely a buy for me. However should the lower line is breached i would not have any doubt to switch to sell

  23. Andy P says:

    Long with +5 limit sell

  24. Emmanuel says:

    Itall depends what type of trade one is after (long term or short term) – no need to rush – wait for the break – if break up above the “minor resistance line” – opporutunity to BUY but relatively short a term trade, with tight Stop loss below support line, and TP at Support line. If break below main support line then an opportunity for a SELL (longer term trade), Stop loss around resistance line, and TP around next support.

  25. Tom says:

    ….Buy on break up & sell on break down.

  26. Emmanuel says:

    Sorry – meant TP at Resistance line (for Buy trade), while on the SALE oppor. SL around “next” Support line (not drawn on chart yet).

  27. 2999y says:

    Buy This 1 it looks like eur/usd

  28. Samson says:

    I would sell with stop just above current resistance

  29. drew says:

    LOOKS TO ME LIKE THE SUPPORT AND RESISTANCE ON THE CHART COULD ACTUALLY BE MOVED UP AND DOWN A LITTLE, SO IT IS STILL EFFECTIVELY TRADING THE RANGE, SO ON BALANCE ONE WOULD BE LONG. DREW

  30. Lex says:

    Sell on break down, buy on break up, no idea on the chart though.

  31. luke says:

    sell????

  32. Margaret says:

    I would say it is a sell – don’t now which share it is though.

  33. Sadanand says:

    Would sell with a stop loss above the recent high.

    Looks like GBPUSD

  34. james says:

    Consolidation phase. Looks like there will be a next leg down.

  35. Captain says:

    I think its the Aussie 200, break above 4125 wait for retest then buy OR breaks below 4025, retest and sell

  36. roy says:

    buy into last wave of correction up. asx 200

  37. AC says:

    Buy, with a stop on break of recent low

  38. CS says:

    buy on next dip to support

  39. Lethal says:

    Looks to me that the market has found support after a crash. I would buy.

  40. Robert says:

    Sell… Breaking down from long time consolidation…

  41. AG says:

    gun to my head, a buy

  42. GB says:

    I think it is in a 3 wave upward correction from the most recent decline, so in the short term I think it may rally to the mid point of the bigger trading range. But I would look to sell from there on a bearish candlestick, It looks like the ASX 200 to me.

  43. Glenn Smith says:

    Buy till it hurts!

  44. Lou. says:

    Lou. sell, sell, sell.

  45. Lou. says:

    mystery chart eur/gbp

  46. Jeremy says:

    Do nothing. Find a better chart. Get that gun away from my head. I never trade under pressure.

  47. Pingback: Mystery Chart – Solved | CMC Markets Blog

  48. Rodney Green says:

    Stand Aside, sideways pattern!

  49. RM2080 says:

    Buy for me

  50. Rajib says:

    I would rather go with buy as risk return ration is favorable. No intuition just money management rules I think can define this trade.

  51. Bugbear says:

    I reckon it’s the ASX200. For me it’s a sell, but I’d want a bit more confirmation before committing. Looks like you’re going to have to shoot me instead…

  52. Gosling1 says:

    Looks like a tipcal silver chart , would not trade it unless i know the overall outlook for gold and the usd, as silver relates to (fundermentals) which will tell you why a recent dramatic drop in price to trend line ,and as it may go further. given overall outlook of europe and usa trending backwards.

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