[Premium] Trade Of The Week

JC Parets
August 31, 2020

This week we're looking at the Financials' sector, which is finally starting to pick up. As such, we've identified a new long setup with an attractive reward/risk.

Financials were a big focus for us last week given their breakout in India and other parts of the world. From a market structure perspective, if US and European Financials start to participate we could see much higher global equity prices, which would be a tailwind for Indian stocks.

As such, we think this short-term momentum can continue, but we want to participate in a name where our risk is well-defined in case we're wrong.

That name is Axis Bank, which broke out above resistance near 480 and is targeting 625 over the coming weeks. As long as prices are above 480, then the near-term bias is to the upside and any weakness can be viewed as a buying opportunity.

Click on chart to enlarge view.

To conclude, it appears that this strength in Financials can continue. If prices are above 480 in Axis Bank, we want to be long with a 625 target.

For all of the stocks we want to be buying and selling, make sure to review our Trade Ideas page.

Also, make sure to check out our "Three Charts For The Week Ahead." Additionally, check out this post we wrote for US Subscribers that we think is particularly important given the development in Financial Services.

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

Allstarcharts Team

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