[Premium] Three Charts For The Week Ahead

JC Parets
March 29, 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 Nifty 50, Euro Stoxx50 & Gold.

Let's move into this week's topics.

1.  The first chart we're looking at is AUDJPY. This is one of our most favourite risk-on indicators and is always on our radar. Over the past couple of weeks, this currency pair has been finding it difficult to move past its resistance. This of course has coincided with a  muted move in the market as well.

84.20 is a strong zone of resistance and while AUDJPY has been on an absolute tear since lows close to 73, a little breathing space cannot be ruled out. This is a level we're tracking closely because if AUDJPY had to pause, this would be a logical place to do so. Consequently, it gives us an idea of the risk sentiment in the market. A breakout above 84.20 could take it to 89.50. so let's wait and watch!

Click on chart to enlarge view.

2. The second chart we're looking at is S&P Global 100. The index has remained above its support of 64.50 despite the choppiness in the market. The move post the breakout above 64.50 has been sideways, but what we're tracking is whether the price moves below the support going forward.

Every rally witnesses a healthy correction, so keep in mind that the alarm bells aren't ringing just yet. But, it is important to track these important level in the weeks ahead.

3. The third chart we're looking at is our stock universe- Nifty 500. Over the past couple of weeks, the price has found it difficult to power through the resistance at 12,260. The slowdown in market sentiment means that we will have to observe this level closely to see the ensuing move in this index.

If the index gives up these higher levels without a fight, then we may see a slightly prolonged correction in the market. However, if the price moves sideways and starts knocking on its resistance again, we may see a resumption of the current trend.

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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