[Premium] Three Charts For The Week Ahead

JC Parets
November 14, 2020

We retired our "Five Bull Market Barometers" in mid-July to make room for a new weekly post that's focused on the three most important charts for the week ahead.

This is that post, so let's jump into this week's edition.

Last week we focused on the Nifty Small-Cap 100 Index, Coal India Ltd., and the Nifty IT Index.

Let's move into this week's topics.

1. The first chart we want to look at is of the Shanghai Composite, which has yet to make new recovery highs. We're seeing other Emerging Market heavyweights like South Korea, Taiwan, and India make new recovery highs, but China remains the holdout. We'll be watching closely to see if these breakouts hold and if the Shanghai Composite follows.

Click on chart to enlarge view.

2. The second chart we want to look at is Copper, which continues to press up against all-time highs. A decisive breakout above 541 would signal the resumption of its long-term uptrend and suggest the next leg higher towards 654 has begun.

3. The third chart we want to look at is the Nifty PSE Index. We've gotten the rotation and mean reversion we were looking for in this index and other very weak areas of the market, but now many of them are approaching potential resistance. We'll be watching closely to see how aggressive sellers are in these areas or if prices consolidate through time instead.

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.

Also, make sure to check out our other weekly post, "Trade Of The Week."

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

Allstarcharts Team

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