[Premium] Three Charts For The Week Ahead

JC Parets
July 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 Nifty FMCG/Nifty 100, Lead & Zinc

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 500. Earlier, we discussed the critical support for the Nifty 500 at March/May lows. Last week Nifty 500 filled the gap formed before its breakdown. While Nifty created a new 52-week low in June, average stocks didn't form a higher number of new 52-week lows. It's reflected in the High low index, which is the 20-day SMA of stocks forming new 52-week highs and new 52-week lows. This divergence indicates a short-term bullish bias for the broader market if the price sustains above 13,360.

Click on the chart to zoom in.

2. The second chart we're looking at is USDINR. The currency pair marked a new all-time high (low for Rupee) as the price continues to march on since it broke out above 77.82. Currently trading close to 80, the target to be tracked comes up to 81.26 in the near term. Going by the trend and momentum in this pair, it doesn't sound extreme.

3. The third chart we're looking at is Silver. Silver has broken down in the most recent market action and has breached the support of 58,100. The price had been trading in a sideways range between 73,900 and 58,100.

With this breakdown, the next target to track would be 53,000. With Silver being more volatile than Gold, could Gold soon follow suit?

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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