[Premium] Three Charts For The Week Ahead
Let's move into this week's topics.
1. The first chart is the 20+ Year Treasury Bonds ETF $TLT, which tracks long-term US Treasury Bonds. The reason we're watching this chart is that prices are testing their 200-day moving average and are threatening to close below it for the first time since March 2019.
Additionally, momentum is very close to getting oversold for the first time since late 2018, signaling that a trend change may be underway and that Interest Rates may rise going forward.
Click on chart to enlarge view.
2. The second chart we want to look at is Capri Global Capital Ltd. If Rates are going to rise, then stocks in the Financial Services sector should have a tailwind to start moving higher...so we want to be looking into stocks in the sector that had been showing relative strength and now have a tailwind to start moving higher.
As long as the stock is above 225, then we can be long with targets near 294 and 335.
The same could be said for Indian Energy Exchange. As long as this stock is above 199, we want to be long with targets near 252 and 335.
3. The third chart we want to look at is the Nifty Metal Index. Prices successfully retested former support near 2,150, but momentum got oversold and the 200-day moving average is flat. Mixed signals continue.
If there's truly risk appetite in this market, we'll see Nifty Metal push back towards 2,600 quickly after this retest of support. If the broader market is weak or flat, then we'll likely see this chop around in the 2,150 area before picking a direction.
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 Monday's Monthly Strategy Session, check out the replay here.
Thanks for reading and please let us know if you have any questions.
Allstarcharts Team