World Markets Today: Volatile in a Range

25 Sep, 2014 (8:07AM IST)

Sep 24, 2014, (10:37pm EDT)

So, U.S. markets had a sudden rally in their last session.

You have any problem with that? Why? Haven’t you heard “go with the trend”? If you haven’t, then start practicing this  fundamental mantra of stock trading now 🙂

The rally was not surprising considering all major indexes had closed on their respective support levels a day before and markets sometime do bounce back from such levels, especially when they are range bound.

That’s why, today, U.S. and European stock future have gone back to trade in the red in early session. Range bound markets are excellent for intra day trading as traders can enter and exit trades at support and resistance levels. Confirm how markets are behaving near these levels and then, with a strict stop loss, you can either buy at support (low levels) or sell at resistance (high level.).

In the current situation in global markets, be careful about buying at support. Markets have shown weakness in recent sessions and might anytime decide to breach lower levels and resume their negative trend.

Any rally or lower trend needs confirmation in the next session and today, first European markets and then U.S. markets will need to show if they intend to continue with their previous session’s rally, or was that just a breather in a lower trend.

Keep an eye on day’s pivot levels of your local index. Any index trading below pivot mark will have chances of trading in the red, while above that mark, traders can look for some profit till he first resistance level.

Expect world markets to trade within their last weeks’ high and low levels and remain range bound. Expect highly volatile trading pattern too, as range bound markets tend to behave- like caged bears or bulls confined by their range.

Use your brains and trade safely 🙂

Good luck, enjoy the day, have a great session in stock markets today!

See you later.

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