25 November 2020 (8:09 am IST)
24 November 2020 (9:39 pm EST)
This week, almost all major stock markets have staged a breakout from their previous ranges and started a new positive wave.
US stock markets have been range bound after a breakout last week, but in their overnight session, Dow Jones pushed up some more and closed at historic high level. Today, US stock futures are rallying and showing that one jump more and US stock markets will start another positive wave at another high level. Dow Jones earlier had a major resistance at 28,000. Now it has a major support at 29,000 and rising from there after some gap up openings.
At the time of writing, US and European stock futures are rallying. All major Asian stock markets are trading high too. Japan’s Nikkei has added another 2% gains after jumping more than 2% in the previous session. SGX Nifty is 70 points higher, showing that Indian stock markets will also open above the previous high level.
How To Day Trade:
- We are in the midst of a strong uptrend in world stock markets.
- Form time to time, these markets turn range bound to catch a breather.
- After that, a new positive wave starts.
- Day traders should follow the trend line and trade with the rising trend.
- When markets turn range bound, it’s better to conserve your trading capital and take advantage of rising trend later.
- Today, it is a rising trend and day traders can take long positions in intraday trend.
- They can also carry forward these positions for the next month, for which we are expecting a Santa rally as usually happens in world stock markets.
- Buy on dips and carry your trades as long as the trend line is unbroken- that is the best trading strategy for today.
World stock markets have returned to a rally phase after a few range bound sessions. US stock markets will have a longer weekend for Thanksgiving so we expect world stock markets to turn range bound again, in the absence of their driving force.