[Premium] Three Charts For The Week Ahead

Last week we focused on USD/INR, Nifty Realty & Nifty PSE.

Let's move into this week's topics.

1.  The first chart that we're looking at is the Shanghai Composite Index. SSEC has been trading in a range for months and seems to have absorbed the overhead supply with last week's breakout. This positive move could act as a catalyst in the emerging markets and extend the current market rally.

Is this the breakout we've been waiting for? We'll have to see about that. We are bullish above 3,460 and the next level to track is 3,710 beyond which 4,100 comes into play.

Click on chart to enlarge view.

2. The second chart we're looking at is FTSE 100. While emerging markets may witness a good move going forward, developed markets aren't far behind. FTSE 100 witnessed a good move in the week gone by and is knocking up against its resistance of 6,930.

A break out above 6,930 could take the index towards 7,900 in the weeks and months ahead. This chart will be on our radar going forward.

3. The third chart we're looking at is Nifty 50 relative to Gold. Gold has been an underperformer over the past few months and has been rather dull. Nifty 50 on the contrary has been clocking new all-time highs every week since November 2020.

The ratio of Nifty50/Gold is moving higher following a retest of the support. While we wait for Gold to turn around, Nifty 50 continues to display strength against Gold with the 200-DMA sloping slightly higher. Persistent outperformance of Nifty50 would indicate that we are better off invested in equities than in Gold.

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