[Premium] Three Charts For The Week Ahead

JC Parets
March 28, 2022

We retired our "Five Bull Market Barometers" in 2020 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 ACWX & EFA, Nifty Midcap 100, & Stoxx Europe 600.

Let's move into this week's topics. We have big important breakouts to track this week.

1.  The first chart we're looking at is S&P 500. For the longest time, we kept reiterating the importance of level 4,500. This was the line in the sand for us, whereby a move below this level could trigger a correction. And it did. We witnessed a dip in the market as soon as this level was given up.

Now, we're looking at a recovery in price as the price bounced back from its support of 4,135 and is currently trading above 4,500. This move even now is just a sideways market. BUT, the important aspect to focus on is that the price is back above an important level. And as long as it sustains above that level, the outlook will be positive. So we're keeping a close eye on this one to see if a breakout comes next, or if the price reverts from all-time highs.

2. The second chart we're looking at is Nifty Energy. We have a new all-time high, folks! The price is gaining strength and moving towards its next level, close to 27,275. With this move, the Energy sector has displayed leadership among the other groups as we finally see breakouts from range-bound markets.

Energy has been in a prime position to gain from current market conditions and we're seeing that play out as big names have finally begun participating in the market. The next target to track from current levels would be 27,275.

3. The third chart we're looking at is Nifty Metal. Similar to Energy, Metals had displayed signs of strength coming into this week and are also trading at new all-time highs. The price has been in a very tight range and finally seems ready for an explosive move. When the price trades in narrow ranges, the breakout is generally quite explosive in nature.

Metal is poised to make a big move if this breakout sustains, and the next target to track in that case would be 8,155. A good time to invest in metals? Seems like it to me!

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

Filed Under: