[Premium] Three Charts For The Week Ahead

Last week we focused on EEM INDA, Nifty 50EQ, Nifty 100EQ, Gold, Copper

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 EURUSD. The euro provides another key piece of information. Last month, the euro ran into a logical level of resistance at approximately 1.08. If the EUR/USD trades above that level, then the dollar will find it difficult to sustain a rally.It made sense, given the euro comprises 57.6% of the DXY. No wonder the dollar can't catch a bid! The question now is whether former resistance will turn into support. Nevertheless, EUR/USD long toward 1.1450. But only if it remains above 1.08.

Click on the chart to zoom in.

2. The second chart we're looking at is the Nifty IT index. It has been consolidating for over eight months now. This week it made a new 8 months high relative to the Nifty 100, which shows the increasing risk appetite of investors toward IT stocks. On an absolute basis, a successful 8-month base breakout would be positive for the rally in IT stocks. IT has been the weakest sector of 2022. Is this situation about to change? Sustenance above this critical level will prove us right.

3. The third chart we're looking at is ASC Adani Equal Weighted Index.
Adani has been an example of how risk management level can prevent us from the tail events. Between September-November 2022, Adani Stocks diverged from the Nifty 50, where Nifty was moving higher without Adani group stock. It was the first event since March 2020 bottom. With a downtrend in place, we're not looking for buying opportunities. Often with the fast correction, there's a long period of consolidation.

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, 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