[Premium] Three Charts For The Week Ahead

Last week we focused on CRB Index intermarket analysis, Nifty Energy & Nifty PSE.

Let's move into this week's topics.

1. The first chart we're looking at is Crude Oil in INR. With Crude Oil in USD moving past 76 and currently trading close to 79.50, we have a breakout in the INR variant as well.

The price moved past 5,670 and has now successfully moved out of a 7-year massive base! That is a huge base!

We are bullish above the level of 5,670 with a target near 5,930, beyond which 7,550 comes into play.

Click on chart to enlarge view.

2. The second chart we're tracking is Nifty Auto. We discussed the Auto index in our Three Charts for the Week Ahead post two weeks back. We now have a breakout in the symmetrical triangle that we were tracking. As mentioned earlier as well, this is a continuation pattern and when measured the target to be tracked comes to 12,630.

The breakout point to track is 10,400. Above this, Nifty Auto is bullish. Below this, there's more pain in the sector.

3. The third chart we're looking at is Nifty Energy relative to Nifty 100. We were tracking this chart to see if the relative strength halts at the resistance which has been holding its ground during the last two breach attempts.

Well, we have a resumption in trend, finally! The line chart has moved past its resistance giving Nifty Energy more impetus to march on forward with strength!

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 with 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