[Premium] Three Charts For The Week Ahead

JC Parets
August 28, 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 MCX iCOMDEX Composite, Equally weighted Nifty 50 Top 10 stocks, and Nifty FMCG Index.

Let's move into this week's topics.

1. The first chart we're tracking is the Nifty Financial Services Index and equally-weight Top 10 Financial stocks. This week, Nifty Financial moved out of a six-month base and closed at an all-time high. Here precedent breakout in the top 10 stocks shows the participation from top heavyweight names.
We are watching this space to see if the rotation into this sector will continue to play out or perish soon.

Click on chart to enlarge view.

2. The second chart we're looking at is the Nifty IT index, which made a new all-time high. The strongest stocks/sectors/assets tend to consolidate ABOVE their price objectives, not below them, and that's precisely what we see in the Nifty IT Index.
The price is above its key Fibonacci resistance along with momentum support. How it acts in the coming week(s) will help inform our broader market view.

3. The third chart we're looking at is Natural Gas. This week, we've witnessed big action in natural gas as it poses for a multi-year base breakout.
Here the level for breakout confirmation is a weekly close above 334. A sustained move above this level could take the price higher towards our target of 468.

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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