[Premium] Three Charts For The Week Ahead

Last week we focused on Nifty 500, Nifty IT relative to Nifty 100, and Nifty Auto.

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 Tadawul All Share Index over 18 years. As the saying goes, there is always a bull market somewhere. TASI made a 16-year high. You can observe the strong momentum reading as the price continue to inch higher. This market has done nothing for decades. Is that about to change? The next level to track would be 2006 high at 20,700.

2. The second chart we're looking at is EUR/INR. The Indian Rupee has been resilient against Euro for over a year. On the monthly timeframe, it had a breakdown below the critical level of 82.20 and pressed the fresh 52-week lows. We expect risk is to the downside as long as the price is below 82.20. The next target to track would be 76.

3. The third chart we're looking at is the Nifty IT index. IT has been the top-performing sector for two years in a row since 2020. So far, 2022 hasn't been IT's year, with April 2022 marking the weakest monthly performance since March 2020.
It has been consolidating below the long-term Fibonacci extension for over seven months. This breakdown comes after a period of underperformance where rotation was evident in the commodities and energy sector. We expect the trend to continue lower and patiently wait for the medium-term trend to change before trading upside from any throwback.

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