17 September 2020 (8:11 am IST)
16 September 2020 (10:40 pm EDT)
World stock markets have started this session with negative numbers as US stock markets had a mixed closing and US stock futures suddenly dipped an hour ago into deep negative territory.
Yesterday, in our technical trend analysis of US stock markets, we had said that these markets are range bound. True to that, US stock markets traded with high volatility and had a mixed closing.
Nasdaq Trend : The biggest loser was Nasdaq, as expected because this tech index is trading in a strict range of 11,300- 10,700. You can draw a box encompassing these levels and see how price stays within that box. After hitting the range resistance, Nasdaq turned lower and traded towards the support level. Now, this index may, or may not continue towards the range support level because RSI indicator is making a “higher low” pattern, indicating that a trend reversal could take in Nasdaq.
How To Trade Nasdaq:
- As US stock futures have turned highly negative, we can expect a lower opening in US stock markets on Thursday.
- If that happens, then we may see markets rising after a lo opening because there is no negative news (at this hour) to push Nasdaq below its range support.
- So, draw a box between its current support and resistance levels (11,300- 10,700) and sit back to see which way the short term trend goes.
- Just follow that trend and make money in US stock markets.
- Also, pay attention to the monthly candlestick chart of Nasdaq.The last two monthly candlesticks on Nasdaq charts are identical in size. The previous one was positive and the current one is negative. Therefore, the next month’s candlestick can turn positive (buying signal) or negative (selling signal).
- At the same time, if the index breaks out of its “box” range on daily charts, it will be a buying signal. And if Nasdaq breaks down the lower support of its range “box”, it will be a selling signal.
US Stock Markets News: The Federal Reserve declared intention of keeping its interest rates low for at least 3 more years to help the economy. Usually, US stock markets welcome such dovish action from the central bank with big rallies. But currently, US stock markets are in a sideways trend so after initial jump, major US stock indexes turned down to close mixed.
Asia Stock Markets : As expected, Asian stock markets opened with negative numbers after a subdued closing in US stock markets. At the time of writing, all major Asian stock markets are trading negative.
SGX Nifty Today: SGX Nifty was flat till an hour ago, but the sudden drop in US stock futures jolted this futures index on India’s Nifty, and SGX Nifty fell with a thud to trade lower by almost 100 points. This indicates a lower opening for Indian stock markets today.
How To Day Trade: In these highly negative and volatile environment, how do you day trade?
- First, do not jump in markets as soon as the opening bell rings, especially if markets are opening with big losses.
- This will take RSI into oversold zone and attract buyers.
- That means, after the opening loss, markets will rise sooner or later.
- Wait and watch when markets get saturated with buying and again turn low from a resistance level.
- That will be a selling indication and bears will come back to beat markets again.
- Join them, follow the trend line and trend with the negative trend.
- Do NOT forget to keep a stop loss in all your open position to save your money from volatility risks.
World stock markets are trading highly negative in the early hours. US and European stock futures dropped like a stone an hour ago. Dow Jones futures are down by more than 200 points, which will keep global stocks under pressure. Overall, it is a sideways trend in world stock markets and we may continue to see positive and negative trends on alternate days this week.