[Premium] Three Charts For The Week Ahead

Last week we focused on US Dollar Index, Nifty Energy & Nifty PSE.

Let's move into this week's topics.

1. The first chart we're looking at is Nifty Realty. The index zoomed away in the week gone by and is currently trading close to its overhead supply zone. But with the move we saw last week, the price broke out of an 11-year base! That is giant, to say the least!

With this strong breakout in place, what's left to see is if we experience a cool-off at these levels or if the next journey towards 620 takes shape.

A lot of good ides coming through in the realty space, so look out for those!

Click on chart to enlarge view.

On a relative basis too, the line chart below broke out of a long-term downward sloping trendline. Good times ahead for Realty? Looks like it so far!

2. The second chart we're tracking is Nifty Media. For the longest time, this has been underperforming the entire market and has been in the doldrums. But we finally have a breakout, folks!

The index broke above the resistance zone of 2005. The next level to track now would be 2,645. With this move, we'd like to see if the follow-through is as strong as the breakout.

But we are bullish only above the level of 2005. A move below that and we'd want out.

On a relative basis, Media is displaying strength after a prolonged period of un underperformance. Keep a close eye on this sector going forward.

3. The third chart we're looking at is Nifty Auto. The price has been moving sideways while forming a symmetrical triangle. Symmetrical triangles are continuation patterns that generally resolve in the direction of the underlying trend.

A breakout here could take the price higher towards 12,130. Going by the constituents, something seems to be shifting in trend in this sector. We'd like to see how much of this is just temporary and how much of this could lead to a rally.

Notice how these are the sectors that haven't been on the list of outperformers at all. We're witnessing a shift in trend in terms of sector rotation. Now will this last, or will this perish quickly, is what we're interested to find out!

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