[Premium] Three Charts For The Week Ahead

Last week we focused on Copper and Base Metals, HDFC Bank, and the Taiwan Stock Exchange.

Let's move into this week's topics.

1. Financials are in focus for the second week in a row, but not just in India. Some global Financial stocks have been able to stabilize on a relative basis and make new recovery highs on an absolute basis, like India and Canda.

Others, like the US and Europe, have failed to do so, but we think they'll ultimately resolve higher. We wrote a post for US Subscribers here that explains our thinking, so check it out. Strength in Financials is positive for global equities as an asset class.

Click on chart to enlarge view.

2. Next on our list is Euro/Rupee, which is testing a key breakout level near 86.50. Whether this is successful or not will tell us whether last week's USD/INR breakdown is a US Dollar story or a sign of broad-based Rupee strength to come.

3. Last on our list is Reliance, which was in the news over the weekend due to its acquisition of Future Retail Group. The stock has been flagging tightly for the last month at our price objective and its resolution will likely have an impact on the broader market due to its large weighting in the index.

If Reliance breaks down instead of out, that will be a headwind for stocks, so we'll be watching closely to see the market's reaction to this deal.

In our view, these charts will help set the tone for this week and provide us information on how we should approach the market in the coming weeks.

Make sure to check out our "Trade of The Week", which is a long setup in Axis Bank. Additionally, here is a post we wrote for US Subscribers that we think is particularly important given the developments in Financial Services.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team