11 September 2017 (8:59 AM EDT)
Like other global markets, U.S. stock futures are pointing to a big gap up opening in U.S. markets.
After that kind of open, is it expected that major U.S. indexes will remain range bound just like European markets that have been trading in a narrow range after initial high opening.
As we have been witnessing in last few months, global markets have been trading in a broader range and within that range, three other trading patterns- up, down and sideways have been taking place at different intervals.
Dow Jones is a classic example of this range -restricted pattern. This index had dropped to its range-support of 21,700 last week and is now headed to range resistance of 22,000.
A gap up opening usually ends in a slow paced, almost straight trading-line. If that happens in U.S. markets today, then traders will have to look for smaller profits within a narrow trading range.
However, there are also two trend-possibilities; one, where markets could continue to rise after a high opening and second, where major indexes may turn down from high opening levels and trade lower through the session. In these conditions traders can expect bigger profits by following the intra day trend.
Watch how markets behave after the opening bell and trade accordingly.
Good luck, enjoy the session!