13 October 2020 (8:05 am IST)
12 October 2020 (10:34 pm EDT)
Previously, we had discussed how major US stock indexes like Dow Jones and Nasdaq had started making smaller candlesticks on daily charts, which indicated a possible trend reversal. US stock markets rallied in their overnight session, and reached their current range top. As a result US stock futures are trading negative in Asia session today, dragging down world stock markets with them.
At this hour, all major Asian stock markets are trading negative. Markets in Hong Kong have stopped trading because of a typhoon. SGX Nifty is some 20 points lower, indicating a flat/ negative opening in Indian stock markets. US and European stock futures are highly negative, indicating resistance in these big markets. The intraday trend is negative in world stock markets, but the overall trend is range bound within a broader monthly trading range.
How To Day Trade:
- A trend is called day traders’ best friend. Today, day traders have a single, downtrend in world stock markets.
- Therefore, they should take advantage of this trend and use day trading strategies for negative trend.
- This means, day traders should watch the trend line in the down direction.
- Whenever price rises, then turns down after touching the trendline, that would be a good place to open short positions.
- In such downtrends, price usually finds weak support but strong resistance.
- These resistance levels would be good trade opening points.
- When the trend line is broken by rising price, that will be the ideal trade exit point.
World stock markets are in a negative trend today. All major indexes are trading down at the time of writing. This downtrend has started near the range top and could continue later in the week too.