18 November 2020 (7:43 am IST)
17 November 2020 (9:12 pm EST)
After rallying last week and starting this week with a big rally, world stock markets are taking a breather by turning range bound.
US stock markets closed negative in their overnight session. Dow Jones has now created another small range after breaking out of the previous range. See 5-hour chart of Dow Jones and this range will become clear.
At the time of writing, US and European stock futures are negative, with minor losses. That makes it uncertain how these markets will trend. Since the losses are limited, it is possible that these futures numbers change during the global session and turn positive.
In Asia, only Nikkei (Japan) is down, all other major markets are trading positive at this hour. SGX Nifty is flat and range bound. We can expect a similar opening in Indian stock markets too.
How To Day Trade:
- Today is the “local trend” time in world stock markets.
- Different markets are trading in different ways.
- Day traders should watch the trend in their local markets and trade accordingly.
- World stock markets are showing a range bound pattern so watch the horizontal support and resistance levels.
- Range bound markets provide opportunities to trade both in up and down directions and are known for higher volatility levels.
- Day trades can find trade opportunities when price rises from the support or drops from the resistance level.
- However, the best trading strategy for such trend is to cut down your trade, be content with smaller profits and not trade too much.
World stock markets are showing a mixed and choppy trend today. The global trend will depend on how US stock futures trade. If these numbers recover later in the session, global stocks will take a clear positive trend. However, a drop in US stock futures will put pressure on world stock markets.