26 October 2020 (7:56 am IST)
25 October 2020 (10:26 pm EDT)
World stock markets are showing a mixed trend in Asia session at the start of this week. Major indexes are negative, only a few indexes are showing positive numbers in the region.
World stock markets are getting nervous as the final days of the US presidential elections 2020 come near. Coronavirus stimulus has gone on the back burner and elections results and their impact on US stock markets are dominating thoughts of investors and traders.
US stock futures are trading negative at the time of writing, putting pressure on global stocks. Markets in China, Australia, and South Korea are trading down. European stock futures are also negative. SGX Nifty is flat with gains of a few points.
How To Day Trade:
- Although global stocks are trading under pressure, if you check the monthly charts of major indexes, especially Dow Jones, S&P 500, and Nasdaq; you will find these trend setting indexes are creating positive indications, as if getting ready to rally.
- Therefore, day traders should keep this in mind; no matter how subdued world stock markets seem, the undercurrent is positive and markets are range bound towards the upper side of their current range.
- Check monthly and weekly chart and you will find the support and resistance levels of this range.
- Trade within this range.
- Follow the short term trend line within these levels and you will accumulate small profits.
- Big profits will come when world stock markets will rise (or fall) like ocean waves in the first week of November.
World stock markets have started this new week with mixed numbers and volatile trading pattern. We expect this trend to continue through the week. The trading range is expected to stay within the last two week’s high and low levels.