[Premium] Three Charts For The Week Ahead

JC Parets
April 24, 2021

We retired our "Five Bull Market Barometers" in mid-July to make room for a new weekly post that's focused on the three most important charts for the week ahead.

This is that post, so let's jump into this week's edition.

Last week we focused on Crude Oil, FTSE 100, & GBP/INR.

Let's move into this week's topics.

1.  The first chart we're looking at is EURINR. We just had the highest weekly close in seven years, with the currency pair closing at 90.65. Sure doesn't seem like a great time for the Rupee! While EURINR has broken above the level of 87 before, it gave up its gains quickly and settled lower.

What we're keen to observe is if we get to witness another rollover from these levels or we see the follow-through in this particular breakout. The price seems to suggest that this move is strong and comes with momentum along with the headwinds that the Rupee is facing at present.

We are bullish above the level of 87 with a target near 101.

Click on chart to enlarge view.

2. The second chart we're looking at is Lead. Base Metals seem to be catching a bid as they recover from their interim corrections that we witnessed over the last couple of months. We have Lead here breaking out above its resistance level of 170, taking another go at that overhead supply zone. This, following a strong move in Aluminum.

We're keeping a close eye on this one to see if the breakout holds its ground and if the commodities rally that we've been seeing signs of, finds its way back to the market front.

We are bullish above the risk management level of 170 with a target near 210.

3. The third chart we're looking at is the Nifty Small-Cap 100 index. When the broader market participation was at its peak at the beginning of the year, we saw strong moves coming through both mid-and small-caps. Now with the market moving sideways, the small-caps have tapered off from their 52-week highs and are showing some signs of struggle.

What we're keenly tracking here is the immediate support at 7,850. A breach of this level could take the small-cap index back towards 7,050, which would be an uphill climb if the market breaks out.

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

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