[Premium] Three Charts For The Week Ahead
Let's move into this week's topics.
1. The first chart is the Nasdaq 100, which remains the strongest stock market index in the world due to its exposure to the US, Large/Mega-Cap, and Growth segments of the market.
Last week it stabilized above 10,670 and is now trying to turn higher. If prices of this index are above last week's lows, then that's a tailwind for global Equities in general.
Click on chart to enlarge view.
2. The second chart we want to look at is Nifty IT, which met its upside objective near 20,275 last week as momentum diverges. This suggests the sector may need to churn in the near-term before continuing higher.
But a lot of the Tech stocks we're looking at are consolidating above their risk management levels and price targets. This is an interesting divergence worth monitoring, particularly given how strong IT has been and its role in helping push the broader market higher as a leading sector.
3. The third chart we want to look at is Asian Paints. This is a strong stock in a weak sector, so whether this breakout retest is successful or not will tell us a lot about risk appetite in the near-term. If prices successfully retest 1,900 and continue higher, that would likely be happening in an environment where stocks, in general, are flat to higher...not breaking down further.
In our view, these charts will help set the tone for this week and provide us information on how we should approach the market in the coming weeks.
Make sure to check out our other weekly post, "Trade Of The Week." And if you missed Friday's post on Emerging Market Stocks, check it out here.
Thanks for reading and please let us know if you have any questions.
Allstarcharts Team