[Premium] Three Charts For The Week Ahead

JC Parets
April 12, 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 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 that of the US  Dollar Index. The price has been going through a steady rise over the past week. Currently trading close to May 2020 highs, DXY faces its next level of overhead supply close to 100.50. When you zoom into this chart on a daily timeframe, the price had been consolidating between the levels of 97.75 and 99.40. With this minor range breakout, the next target to track would be 101.05.

A breakout above 100.50, however, opens up a higher target close to 103. But if DXY is doing well, then stocks and commodities are certainly going to be under pressure. That's the big takeaway here.

2. The second chart we're looking at is Nifty Energy. The price is trading at a new all-time high as we speak! Energy has been taking leadership in the market for the right reasons. The Value areas of the market are certainly showing up first. Several stocks are moving out of their ranges and bases with Energy moving higher.

With this move, the risk management level to track is 27,275. The next target to track would be 38,100. Definitely keep an eye out on this sector.

3. The third chart we're looking at is Nifty India Defence. This is a sub-sector that we track for the listed stocks mentioned below. As you can see, the price broke out and zoomed past its earlier level of resistance.

With this move, the sector constituents have been moving out of their zones and consolidations and breaking out. There are several names to track in this segment and we're seeing a good move brewing in these stocks.

We saw the index breakout out of its base and retest that base in 2021. For quite some time, the index had been consolidating as the market struggled to find its direction. But looks like the breakout is here! We're certainly tracking this chart more closely now.

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

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