[Premium] Three Charts For The Week Ahead

JC Parets
June 27, 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 Shanghai Composite/S&P500, Nifty Auto/Nifty 100, & 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 the All Country World Index. This ETF has managed to hold on to its 2020 (pre-covid) highs in the current market scenario. As indices across the globe tumble beneath their support zones, ACWI has displayed resilience. For that matter, the week gone by was not as brutal as the earlier ones. But there is importance in the fact that the price did not slip lower. There is information there.

Is that information pointing to any long-term strength in the trend? No.

But how this ETF reacts around these levels gives us an idea about the general market health.

Click on the chart to zoom in.

2. The second chart we're looking at is Silver. The price has been stuck in a range between 73,900 and 58,100 since July 2020. It's coming close to a two-year consolidation as of now. But what we're interested in observing here is the reaction of the price around the support of 58,100. Going by the base metals, the crucial levels of support have been breached. While Silver has been trading in a sideways range, bouncing off of these levels several times in the past, the current market sentiment could exert extra pressure on the price at these levels.

Silver is referred to as the crazy cousin of Gold. So whatever may be the price action in Gold, Silver will be a dramatic version of that.

A bounce back from these levels would be perfect for a range-bound trader.

3. The third chart we're looking at is China. The Shanghai Composite has bounced back strongly since the lows marked in March earlier this year. Currently making higher highs and higher lows, the index is now trading above the resistance zone of 3,250. With this move, the index is poised to move higher toward the target of 3,500 followed by 3,720.

The Shanghai composite has been displaying strength for a while now, so this is not new. The breakout above 3,250, however, is what confirms the inherent strength in the index.

In our view, these charts will help set the tone for this week and provide 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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