[Premium] Three Charts For The Week Ahead

JC Parets
May 24, 2022

We retired our "Five Bull Market Barometers" in 2020 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 All India Market Cap, BSE Small cap & Nifty Energy.

Let's move into this week's topics. We have big important breakouts to track this week.

1. The first chart we're looking at is S&P 500. The index had given up the level 4,100 which then saw a follow-through in the week gone by. If the bulls have an important level to claim, then that would be 4,100 on the S&P. The pattern has been quite toppy in nature with some calling it a head & shoulders pattern breakdown. What we know is that the breadth hasn't improved to suggest that this trend would reverse. As long as the SPX is trading below crucial levels, it's difficult for the market to bounce back. If this trend continues, the next level to track would be 3,400.

2. The second chart we're looking at is Nifty 500. In the week gone by, the price halted at the support of 13,600. While we did witness a lower high and lower low pattern in the index, that trend seems like it's going sideways.  If the price continues to hold on to these levels, then there could be a case to make for a consolidation trend. 13,600 is the important level to track here. A beach of this level and we're headed towards 12,660 with the implication of a stronger negative trend.

3. The third chart we're looking at is USDINR. The Dollar Index seems to have halted to catch its breadth which has consequently pulled the breaks on the USDINR rally as well. Keep in mind, that if this pair is moving higher, the Indian Rupee is weakening. The price had touched a high of 78.12 and retreated. Currently, the price is hovering close to 77.85. A sustained move above this level would trigger new lows for the rupee versus the dollar.

77.85 is an important level to track and hence we're keeping an eye on this chart with the price moving around the currency pair's all-time high.

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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