Preview: Monthly Charts Strategy Session

JC Parets
January 1, 2021

The end of a month is more like a celebration at ASC. We sit back, relax, and go through Monthly charts and look out for interesting trends developing across the globe. In our Top-Down Analysis approach, we go through thousands of charts to arrive at a wholesome view of the market.

There were five charts that popped out in particular. We thought of giving you a preview of our Monthly Charts Strategy Session which is scheduled for Tuesday, January 5th at 7PM IST. 

Let's take a look at these charts!

What do you do when an index has clocked a 30 year high? You track it's every move and watch history as it unfolds in front of your eyes. Nikkei 225, which was on our watchlist, has finally moved above 26,900. A strong move would propel the price higher towards its next target of 32,850. This would in-turn have an impact on Japan's Asian peers. For now, let's wait and watch.

Click on chart to enlarge view.

Next up, is the Nifty 100 Index which has clocked a new high, closing comfortably above its former resistance. The broader market participation in the rally continues to play out as indices and stocks claim historical levels. We are positive in Nifty 100 above 12,995 with a target of 19,700.

DAX was on our radar a few weeks back as it was approaching its resistance. On the monthly chart, the index has closed above a crucial resistance while clocking a new all-time high as global markets continue to rally. After halting for a few weeks, the index has moved above its resistance of 13,250. We are positive above this level with a target of 17,720.

Nifty Pharma has been a favorite of traders and investors alike this year and the index continued its journey upwards towards the target of 14,050, after trading sideways over the past four months.

Dr.Reddy's is up next. The stock has generated handsome returns in the year gone by. Looks like we may see higher targets being achieved in the new year as the stock breached its resistance of 4,940 on the monthly chart. With Pharma looking good to go, we are positive in Dr.Reddy's above 4,940 with a target of 7,800.

We will discuss many more such interesting setups in our Monthly Charts Strategy Session. For registration details click here.

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

Allstarcharts Team

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