12 October 2020 (8:10 am IST)
11 October 2020 (10:39 pm EDT)
It’s anew week in world stock markets and different markets are showing a mixed trend, with no one direction visible in global stocks.
US stock markets had rallied in the closing session of the last week. But today, US stock futures are starting this week with feebly numbers. Dow Jones futures have dipped below the red line, trading with minor losses. Nasdaq futures were positive with adequate gains; but now those numbers have also started slipping. In Asia, major stock markets are trading mostly positive. SGX Nifty is also 43 points higher at the time of writing. European stock futures are showing single point losses in early trade.
How To Day Trade:
- Since global markets are not showing any single trend, day traders should focus on the local trend.
- Check the monthly, weekly and daily candlesticks to see if there is any resistance ahead or the trend is strongly positive.
- For example, major US indexes are creating strongly positive candlestick pattern on monthly charts, but on daily charts these indexes are making small candlesticks, indicating a need of some positive news to push ahead.
- Once day traders have identified the trend line on daily charts, they should trade in the same direction and exit their positions when price breaks the trend line.
World stock markets are showing a mixed trend at the time of writing. US stock futures are looking weak, so their progress through the session will affect the global trend too. A drop in US stock futures will drag down global stocks but a jump in US Stock futures can change the trend in world stock markets to a positive one.