[Premium] Three Charts For The Week Ahead

JC Parets
November 29, 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 NDX/DJIA, Nifty 50 Top 10 Constituents, & Nifty Pharma along with Nifty IT.

Let's move into this week's topics.

1. The first chart we’re looking at is that of European Banks. Now, this is one of our risk-on indicators whereby we track this to identify the sentiment in the market. In an environment where EUFN is moving higher, the stocks are most definitely doing well, and vice versa.

What we'd like to focus on is the level where EUFN is trading. European Banks are positive as long as they remain above the level of 20. Which currently, they are not. For quite some time we've seen the price move sideways.

At the level of 20, there is a lot of price memory. Currently, we are trading below that level and that is something we'd like to keep on our radar. If this price resolves lower, it's not going to be great news for stocks.

2. The second chart is Crude Oil in Rupees. This week, we saw the price dip below the immediate support level of 5,670. Earlier, Crude oil achieved the target of 5,930 and then proceeded lower. If the price continues to trade below the level of 5,670, we would have a failed breakout in front of us. This means that the big-base breakout would take the price right back into the base.

We're keeping an eye on this chart to see where it's headed in the weeks ahead. A commodity supercycle needs Oil to perform well.

3. The third chart we’re tracking is Nickel. Over the past many months Nikel has always been a laggard among the base metals. But recently, we've seen Nickel take some sort of a lead among its peers.

The price was back again at its resistance level last week, taking another go at the overhead supply. This, along with bullish momentum in the indicator. A look at the other base metals and you'll see that the weakness among other metals has been greater.

Is this a shift in leadership within the metals group? It's possible. But it's still something to follow going forward. And follow, we will!

In our view, these charts will help set the tone for this week and provide us with 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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