[Premium] Three Charts For The Week Ahead

Last week we focused on Stoxxx Euro 600, Aluminum & Nifty Commodity.

Let's move into this week's topics.

1.  The first chart we're looking at is S&P 500. We have a breakout! With this week's close, the S&P 500 has moved past its resistance at 4,100, paving way for the next leg of the rally towards 5,300. This move brings back the narration of a continuation in the current market rally as the world's most tracked index is alluding to one thing- it's a bull market. Over the past two months, several global indices moved sideways, indicating a pause in the ensuing market rally. This breakout puts the rally back on track.

Click on chart to enlarge view.

2. The second chart we're looking at is Nifty Metal. The sector has broken out of a massive 10-year base and has closed above the crucial resistance of 4,200. Metals have been performing well and with the index breaching an important level, it looks like this outperformance will continue in the weeks ahead.

We are bullish above the level of 4,200 with a target near 5,500.

3. The third chart we're looking at is Nifty Financial Services relative to Nifty 100. This ratio chart has breached its support and is heading lower. Financial Services have been on a pause since mid-Feb and with the breach of the ratio chart, it doesn't seem like the sector will be out of the woods soon. This is one space we're keeping a close eye on. Will the sector come through once Nifty breaks out of the sideways range? It's likely. But we're going to have to see.

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