12 May 2019
We don’t know howworld stock markets will react to political signals in the ongoing U.S.-China trade disputes, but on technical charts, last week closed with positive trend reversal signals and a bounce back could be expected for next week.
Asian stock markets will start opening within a few hours and U.S. stock futures will also open for trade for the new week. The trend in these futures will decide how world stock markets will trade on Monday.
Friday’s closing session in U.S. stock markets ended with healthy gains for major indexes and created “Bullish Engulfing” candlesticks+ Double Bottom pattern on technical charts of major indexes. Also, on the daily chart of major U.S. indexes, a positive, bottom Hammer candlestick was formed which usually indicates a positive trend reversal from support levels.
In European markets, the leading German index DAX closed with positive numbers, indicating that these markets were bored with falling continuously and support was building up.
For Indian traders, SGX Nifty rose with U.S. markets and closed positive, giving hopes of a positive open in Indian stock markets on Monday.
Overall, world stock markets will remain rangebound in case a positive opening welcomes traders on Monday. the immediate trading range will be within Friday’s high and low levels and a broader range will be between last week’s high and low levels.
Remember, the trend in world stock markets will depend on how U.S. stock futures trade. If these futures trade positive, global stocks will also find support. If U.S. stock futures trade negatively then last week’s negative trend will continue in world stock markets.