[Premium] Three Charts For The Week Ahead

JC Parets
January 4, 2021

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 Kospi 200, GBP/INR, and Nifty Metal.

Let's move into this week's topics.

1.  The first chart that we're looking at is the USD/INR currency pair. With the Dollar extending its losses, the Dollar's relative strength against Rupee seems to be deteriorating. Currently trading just a smidge above the support of 72.90, USD/INR is at a curial level. While the currency pair has bounced off this level before, persistent weakness in the USD could take the price lower towards 72.20.

Click on chart to enlarge view.

2. The second chart we'd like to look at is Nifty Realty. The index has broken above its resistance of 300 with RSI alluding to bullish momentum. What remains to be seen is whether the index manages to hold on to this breakout or fails as it did in February 2020. A sustained move above this level could propel the Realty stocks higher.

Going forward, we may see levels of 370 as long as the index remains above 300.

3. The third chart we're looking at is Nifty PSE. This sector has performed well over the past three months and has moved above its resistance of 2,600 with strong momentum being seen in RSI as well. Currently, the index is halting at the resistance of 2,950. A breach of this level could take it towards 3,400 and 3,950 respectively.

We will be tracking this space to see if the index moves above 2,950.

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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