[Premium] Three Charts For The Week Ahead

July 19, 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 500 High Low Index, DXY and Silver (in rupees)

Let's move into this week's topics. We have big, important moves to track this week.

1. The first chart we're looking at is Nifty 50. Over the past few days with the index moving sideways and attempting to move higher, there have been a few breadth thrusts that have shown up. As can be seen in the chart below, the percentage of new 21 lows shot up last week. The first signs always show up in the lower time frame charts. So this is us just keeping track of these updates.

If these breadth thrusts start showing up on the medium-term time frames as well, the market could very well recover going forward. But there's some lost ground to cover.

Click on the chart to zoom in.

2. The second chart we're looking at is Nifty Auto. Well well well, we have a breakout, folks!

The price is currently marking new all-time highs and has broken out of a big base. We're currently looking at a 4-year base breakout! That's some strength coming through in Auto. With the price moving past the significant 2018 high of 12,100, the next level to follow would be 16,840. This of course is the medium to long-term target.

The relative strength chart of Nifty Auto is making new 3-year highs. So there we have it, this is the sector displaying relative and absolute strength.

3. The third chart we're looking at is Copper. Dr. Copper needs to see a doctor, because boy oh boy, it doesn't look good.

The price has breached the support of 640 and continues to trade lower. For the longest time, it was the resilience in Copper that was impressive. With Lead and Copper both crashing below their respective support zones, the base metals are certainly melting away.

The next level to track would be 530. Quite a drop from the 815 we were tracking a few back!