[Premium] Three Charts For The Week Ahead

Last week we focused on $VLG, Nifty 50, NiftyIT/Nifty Metal

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 S&P 500 index. It is currently in a downtrend or, at the very least, not in an uptrend. Over the past year, the index has remained below its anchored Volume-Weighted Average Price (VWAP) from its all-time highs, as well as its 161.8% Fibonacci retracement level. This level has served as resistance on three separate occasions, indicating its significance in the market.

The next move for the S&P 500 index is dependent on how the price reacts to this overhead supply. If we witness a successful move above the 4,100 level, there may be a bullish case to be made for the market. However, if the resistance level holds firm, we must be prepared for the possibility of another leg of the rally moving lower. Therefore, it is important to keep a close eye on the market and wait for further indications before making any decisions.

Click on the chart to zoom in.

2. The second chart we're looking at is USDINR. USDINR currency pair has been consolidating for over four months. Consolidation refers to a period of time when a currency pair trades within a specific range with no clear trend. During this time, the price of the currency pair tends to move within a relatively narrow band, and traders may have difficulty identifying the next directional move.

However, the chart also indicates that there was a closing high of 82.9 in October 2022. This means that the currency pair had reached a high price point at the time, and since then, it has been moving within the consolidating range.

Currently, the USDINR currency pair is trading close to the range high. A range high refers to the upper limit of the consolidating range. This is an important level for traders as it may signal a potential breakout from the range and a directional trend.

3. The third chart we're looking at is Reliance Industries. The chart has shown that the stock price for Reliance Industries has been moving in a consolidated range for over a year and a half. This means that the stock has been trading within a certain price range and has not shown any significant trend in either direction.

At present, the stock price for Reliance Industries is near a key polarity support level. A polarity support level is a technical analysis term that refers to a price level where a stock has previously seen a lot of buying interest and has held up against selling pressure.

This level is considered important as it may provide a support base for the stock price and prevent it from falling further. As the heaviest-weighted constituent of the Nifty 500, the presence of Reliance Industries in this range can be seen as positive for the sustainable market move.

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