3 December 2019, (10:15 pm EST)
4 December 2019 (8:46 am IST)
World stock markets have opened this session with negative numbers in the Asia session.
At the time of writing, all major Asian stock markets are down by 1%. Only the Shanghai Index is showing lesser losses. SGX Nifty is down by -33 points, indicating a negative opening for Indian stock markets.
As you all know, this drop is triggered by a lower closing in US stock markets in their overnight session, when all major indexes closed with -1% losses. US stock markets have turned negative after indications that the US-China trade deal will be finalized only after the 2020 Presidential elections.
But, looking at the candlestick chart of Dow Jones, the index has made a sideways pattern in its 5-hour chart. So now, we can expect this mega index to trade within this new range of 27,500- 27,400.
The global trend will depend on how US stock futures trade in this session. Right now, these futures are moving between slight positive to minor negative numbers.
For day trading, it will be better to watch both support and resistance levels and trade with the short term trend within these levels. If support levels become stronger, then we will see a range bound trend within this week’s high and low numbers. Otherwise, the weekly downtrend will continue.