[Premium] Three Charts For The Week Ahead

JC Parets
July 19, 2021

We retired our "Five Bull Market Barometers" in mid-July last year 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 EEM vs. URTH, Nifty Realty & Zinc.

Let's move into this week's topics.

1.  The first chart we're looking at is Crude. We saw a great move come through in this commodity but we've been harping about how we think there could be a pause. Well, the pause is here and at an absolutely logical level too! 76 was the line in the sand. This is the resistance that has been in place since Crude crashed in 2014.

What we'd like to observe is how the price reacts around these levels. Will we see a new base form here? Will we see consolidation and then a continuation in trend? Are we moving back towards 66?

Lots of questions need to be answered to get more clarity.

Click on chart to enlarge view.

2.The second chart we're looking at is the Nifty Small Cap 100. This index is marching higher as the broader market finds its direction. What is interesting to see is that the momentum is also on the same team as price, and that is bullish. As Nifty 50 tries to move out of its consolidation, the small caps seem to be making the most of this momentum.

Will we see a pause in momentum here? It's possible, but so far, the trend seems good.

The risk management level to be considered is 9,656. A move below this and all bets are off the table! So definitely keep that in mind.

3. The third chart we're looking at is Nifty Realty relative to Nifty 100. After years of a downward sloping trendline on this relative chart, we finally saw a breakout over the past week. With that in place, we could see the Realty sector take leadership in the weeks going forward.

The indicator too is in the bullish regime, adding weight to the possible strength that we might be able to witness if the price holds its levels.

For now, we're waiting to see if this is just a blip or if there is something bigger in the making.

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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