[Premium] Three Charts For The Week Ahead

Last week we focused on IN10Y, NiftyCPSE, NiftyRealty.

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

1. The first chat we're looking at is CAC 40. Looking at the chart, we can observe that buyers have finally achieved an upward breakout after two decades of no progress. This has been marked by the successful reclaiming of a crucial resistance level at the 2000 highs last month. Such a development is a positive sign as it signifies that buyers have gained control over the market.
Moreover, the fact that more and more countries are trending towards the upside is a testament to broadening participation overseas. The recent action from France is particularly noteworthy as it supports our bullish view of equities worldwide and reinforces our thesis of European leadership. Over the last four months, we have observed bullish evidence continuing to accumulate in favor of international equities, particularly in Europe.
This is further substantiated by the fact that the London FTSE 100 has been achieving all-time highs, and France's CAC 40 Index is now following in its footsteps. This development not only indicates the positive sentiment towards European equities but also suggests that the region may be leading the charge towards a global market upturn.

Click on the chart to zoom in.

2. The second chart we're looking at is Nifty 50 and ASC Nifty 50 Top 10 stocks index. The Nifty 50 index has been in a downtrend after encountering resistance in December 2022. At present, it is trading close to the Anchored VWAP (Volume Weighted Average Price) from the lows of June 2022. It is important to note that the key level to watch out for is 17,350, as this level could play a crucial role in determining the future direction of the index.
Additionally, the current cycle of strength in the Nifty 50 is primarily driven by the top 10 stocks in the index. The Top 10 index is currently holding above the key 2021 high and the Anchored VWAP from the lows of June 2022. This is a positive sign as it indicates that the top 10 stocks are leading the market and are able to sustain their bullish momentum.
As long as the top 10 index maintains its previous high, our outlook for the Nifty 50 remains positive. This is because the performance of the top 10 stocks has a significant impact on the overall direction of the index. Therefore, it is important to keep an eye on the key levels and monitor the performance of the top 10 stocks to gain a better understanding of the Nifty 50's future movements.

3. In the realm of cryptocurrencies, Bitcoin and Ethereum have managed to maintain their positions above their previous peaks from the 2017 and 2018 cycles. This is a crucial piece of information because these levels signify the highest points that the largest cryptocurrencies reached during the previous market cycle. By examining the monthly candlestick charts up to February, we can gain insight into the current situation.
The fact that the former resistance levels have transformed into support is a positive sign. Bulls have managed to defend these crucial polarity zones successfully since last year. Therefore, as long as we remain above these previous cycle highs, the structural trends for the most significant cryptocurrencies are still intact. Despite the tactical trends remaining somewhat unclear, 2023 has seen a promising start. Both January and February have experienced higher prices, which is a positive indication for the future.

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