[Premium] Trade Of The Week

JC Parets
January 31, 2021

This week we're looking at one long setup and one short setup. The sectors we're focusing on this time are Manufacturing and Media.

As long as the short-term weakness in the market is in place, we will look for selling ideas that fit our risk management and time frame prerequisites.

Cummins India has been on our radar for some time now. This week we saw a breakout in the price in a weak market environment. With the 200-DMA facing upwards and momentum staying close to a bullish regime, we could witness a good move in this stock going forward.

We are bullish above 650, with a target near 880.

Click on chart to enlarge view.

Media has been a consistent underperformer in this market and we expect that to continue in the weeks and months ahead as well. Sun TV has struggled to move past 550 and has now moved below its strong support of 501. Bearish divergence can be seen on the chart below with the price failing to move higher.

We are bearish below 501, with a target near 440.

The market is reeling under short-term pressure, although the long-term trend remains intact. We will be on the lookout for any signs that say otherwise.

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

And if you're a Premium Member, be sure to check out our other weekly post, "Three Charts For The Week Ahead."

Allstarcharts Team

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