[Premium] Three Charts For The Week Ahead

JC Parets
September 20, 2021

We retired our "Five Bull Market Barometers" in mid-July last year 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 Shanghai Composite, MCX iCOMDEX Base Metals Index and Nifty 50/ Gold.

Let's move into this week's topics.

1. The first chart we're looking at is that of the US Dollar. DXY is in focus again because it's in that trading zone where it demands a lot of attention. Not much will happen until it continues to trade between 91.70 and 93.50. But beyond these levels is what we're interested in.

The price took a shot at a breakout recently but failed to hold on to higher levels. We're back to that point again.

So will there be a breakout and a follow-through? We don't know.

Will the dollar roll over and add strength to equities and commodities? We don't know.

BUT, we know our levels. And we know what to expect when either of the two levels is breached. So we will be prepared for what is to follow. And so shall you.

Click on chart to enlarge view.

2. The second chart we're tracking is Nifty Energy. We were discussing this chart early this month when we had the Monthly charts at hand. And this was at a crucial point then.

Well, we have a breakout, friends! The price has moved past the level of 20,580, which shall continue to act as the risk management level going forward. If all stays as is, the next target to track would be 27,275.

Keeping this in mind, the sector constituents could use these tail winds to fly higher.

3. The third chart we're looking at is Nifty PSE. The Public Sector Enterprises space has picked up the pace, and how! We witnessed a sharp base breakout in this index last week. The price moved out of a close to four-year base!

With this move in place, the next target we're tracking is 4,445. 3,750 will act as the risk management level. We are very clear, however, that a move below 3,750, and we're out of here!

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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