[Premium] Three Charts For The Week Ahead

Last week we focused on the Nifty Small-Cap 100 Index, Reliance, and Zee Entertainment/Nifty Media.

Let's move into this week's topics.

1. The first chart is of Zinc, which is breaking out to new highs. The strength in Base Metals continues and we continue to see this as bullish for Emerging Market stocks and other cyclical assets.

In addition, it's also a trade idea in and of itself. If prices are above 195, we can be long with a target near 234.

Click on chart to enlarge view.

And same goes for Copper, which is breaking out to new all-time highs after a couple months of consolidation. If prices are above 541, we can be long with a target near 654.

2. The second chart we want to look at is US Regional Banks relative to the S&P 500. We've been talking about Bank stocks around the globe as they've been major laggards, but they're now starting to catch a bid as US Interest Rates hit multi-month highs.

Regional Bank weakness was a big heads up ahead of the market crash earlier this year and could be sending us a bullish signal here if they continue to build on their recent improvements.

3. The third chart we want to look at is Apollo Tyres, which is a stock that looked like an attractive short setup for a while there but never got any downside momentum. And much like a lot of other weak stocks we've seen over the last 6 months, has now resolved higher rather than lower.

This is indicative of the type of environment we're still in, where the demand for stocks continues to outweigh the supply of them by a significant margin. Until that changes, we want to continue erring on the long side, as we discussed in our Q3 playbook and recent conference call.

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.

Also, make sure to 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