[Premium] Three Charts For The Week Ahead

Last week we focused on S&P 500, Nifty Energy, & Nifty Metal.

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 Nifty 50 with the Advance-Decline Line of the index. The market seems like it's on the road to recovery, what with all the bounceback. But a confirmation always comes through only when the internals suggests the same thing. Here, we're speaking about the market breadth.

The advance-decline line of the Nifty 50 is now making new all-time highs, folks! We're back in the green when it comes to this particular indicator. This is a good sign for the market because unless we see these indications in the breadth indicators, we don't like to dive in.

Confirmation is key! Will the Nifty make a move towards its prior highs now? Certainly seems like it. Watch this space for more.

2. The second chart we're looking at is Natural Gas. This commodity is back above its resistance close to 402. Again, we're taking a look at monthly charts here, so keep in mind that these are long-term trends we're discussing.

The price attempted to move out of its consolidation in September 2021 but failed to hold on to those highs. We're looking at another attempt to break out of the 11-year base that has been in place. Will this time be any different? Well, we won't know until it pulls through. This is definitely one chart we're watching closely.

3. The third chart we're looking at is Reliance Industries. The big man is here. With Energy taking off and making new all-time closing highs, how could Reliance not make a move? On the monthly chart, we're looking at a breakout in price that has come after several months of a sideways move.

The price is attempting to move out of its seven-month base. If Energy has to fly away, it certainly has to be along with Reliance. We're seeing a strong momentum develop in this stock after a long gap. If the price manages to sustain at higher levels, Reliance could be the game-changer again.

This is certainly an important stock to track as we observe Energy and Commodities play their part in the current market cycle.

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