[Premium] Three Charts For The Week Ahead

Last week we focused on CAC 40, Copper & Nifty Pharma.

Let's move into this week's topics.

1.  The first chart we're looking at is Nikkei 225. Several indices across the globe are taking a breather from the strong equity rally we've witnessed over the past year. While the move is still messy, to say the least, we're keeping an eye on indices to see if they breach important levels. Nikkei 225 seems to be testing its support of 26,900. We're tracking this space to see if the price manages to hold above this level.

A breakdown could lead to a corrective move in the market that could last longer. This sentiment could also spill over to other APAC economies.

Click on chart to enlarge view.

2. The second chart we're looking at is Nifty FMCG. This index has been moving sideways for a while. It seems like in the current messy market environment, the sector is finally catching a bid. This is a similar theme that we're seeing in the US where consumer staples are moving higher.

The next long-term target that we're tracking is 39,840. But the reason we're watching this space is that if FMCG makes a new all-time high, then consumer goods will be back among the leaders. A resultant factor is a weakness in the broader market.

3. The third chart we're looking at is Nifty PSU Banks. While Financial Services and Private Banks have been struggling, Nifty PSU has been showing a little more resilience than what's expected of it. We're interested in seeing whether this move holds its ground, or crumbles going forward.

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