[Premium] Three Charts For The Week Ahead

JC Parets
September 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 VEU, Value Line Geometric Index with Small Cap 100, & Nifty Next 50.

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 the currency pair of AUDJPY. This currency pair goes up top on our risk-on metrics list, so definitely one of the most important charts to track. In the week gone by, we saw a breakout come through as the price closed above the resistance level of 97. With this breakout, the price is trading at new 8-year highs! That's a big bade breakout coming through!

If the price manages to sustain above the risk management level of 97, we may see levels of 102.50 soon.

From a sentimental perspective, this does add a risk-on profile to the current market but not all risk-on indicators are headed in the same direction. Hence, we're looking out for more conviction.

Click on the chart to zoom in.

2. The second chart we're looking at is Nifty Mid-Cap 100. The price is trading at an important inflection point. With the close last week, the price has managed to just about move past the resistance level of 31,850. Now, this is a big level. The price has been struggling to get past this resistance since early last year. This is the point where the bull market halted and took a breather. So a breakout here is of great significance.

What's left to observe is if the price can hold on to these high levels without giving them up. We keep saying how the more times a level is tested the more likely it is to be breached. This could be just that!

3. The third chart we're looking at is Nifty PSU Bank. The PSU Index is trading at new 3-year highs as the index moved past its earlier swing highs. PSUs have been gaining strength in a gradual manner with each week adding more positive moves from the index constituents.

The next target to track would be 3,445 as the price proceeds to get closer to its 2019 highs.

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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