[Premium] Three Charts For The Week Ahead

JC Parets
July 4, 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 ACWI, Silver & China

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 FMCG vs. Nifty 100. The ratio closed at a new 52week high after forming a base for over 1.6 years. This multi-year breakout sets clear outperformance for FMCG. We know that FMCG is a defensive sector and tends to outperform the market in a broadly weak environment. So it's no surprise we're seeing some strong moves coming this way.

Click on the chart to zoom in.

2. The second chart we're looking at is Lead. It has been moving sideways for over a year now. Last week, we saw a strong bearish candlestick come through as the price moved past the support of 181.50. With this move, we can look for the next price target of 124. This big base breakdown is certainly negative development for the ongoing weakness in the metal sector.

3. The third chart we're looking at is Zinc. Base metals are leading the weakness in the commodity segment. Last week, it had a breakdown from the critical Fibonacci level at 295 and a multi-year tight range of momentum indicator. Below 295 next target to track would then be 233.

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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