12 March 2018 (8:50 AM IST)
11 March 2018 (11:20 PM EDT)
As expected, global stock have opened with a big jump in Asia session, following a rally in U.S. stock markets in their closing session last week.
U.S. and European stock futures are trading higher, indicating that the previous positive trend will continue in these markets. Dow Jones still has nearly 160 more points to go before it hits another resistant of 25,500 so, traders should follow the uptrend in this index till that level is reached.
Since global stock markets are trading in a broad range and keep bouncing up and down from support and resistance levels, day traders will have to change their trading strategies near such levels and keep an eye on trend reversal points which will be indicated by important Fibonacci levels or Moving Averages.
At the time of writing, All major Asian stock markets are trading with highly positive numbers. SGX Nifty is 130 points higher, indicating a gap up opening in Indian stock markets today.
U.S. and European stock futures are also trading with big gains, picking up the trend of last week.
Such big openings usually create a narrow trading range in markets where indexes trade slow paced and become restricted near their opening levels. Global stock markets may see a mixed trend today, where after a positive opening, some markets will continue to hold on to those gains and trade in a narrow range and some indexes, that come close to important resistance levels, will revers their trend and close lower than their opening levels.
Watch and observe how your local index trades and follow the short term trend.