[Premium] Three Charts For The Week Ahead

JC Parets
March 7, 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 India 10-year Government Bond, Nifty Mid-Cap 100 & Nifty Energy.

Let's move into this week's topics.

1.  The first chart we're looking at is US Dollar Index. DXY has moved past its crucial resistance at 91.60-91.70 and closed at 91.98. A rally in DXY can have a negative impact on both stocks and commodities. So this is one space we're tracking closely. The next level to watch out for is 92.60, following which 94.60 may come into play.

Click on chart to enlarge view.

2. The second chart we're looking at is Crude Oil. Crude has been rallying non-stop from 2,725 levels and has now breached the highs of 2020 as well as 2019. The indicator is deep in the bullish momentum territory which bodes well for a further upside towards 5,230 with 4,600 acting as a risk management level.

3. The third chart we're looking at is Aluminum. Aluminum has displayed relative strength this week as base metals took a beating. While all other base metals moved below their respective support levels, Aluminum continues to hold out. It is important to note here, that these are extremely short-term moves that we're tracking. This must not be confused with the commodity supercycle that we've been referring to, which is a longer-term phenomenon.

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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