16 September 2020 (7:56 am IST)
15 September 2020 (10:26 pm EDT)
World stock markets are showing a positive, but choppy trend today. Here is the technical analysis of what is happening in different parts of world stock markets:
US stock markets closed with positive numbers in their overnight session. But, gains for Dow Jones and S&P 500 were very limited while Nasdaq continued it up trend within a small, weekly range.
Technical Trend Analysis of US Stock Markets: US stock markets have been very choppy in the last three weeks.
- major stock index have become range bound and trading in 2-days up, then 2-day down kind of trend.
- With this week’s early rally, these indexes have reached their current range top. Nasdaq has recovered almost all its losses from the previous week.
- Since major indexes are now trading almost at their small, lower range top day traders should be cautious about a sideways or lower trend.
Asian stock markets trading today : Asian stock markets are mostly trading positive. The main news from Asian stock markets is about Japan’s export numbers that have fallen almost 15% YoY basis. However, Nikkei is still trading positive and only the Shanghai index is trading negative in Asia markets.
SGX Nifty Today: Surprisingly, SGX Nifty is trading negative in early trading today. At the time of writing, this futures index of Nifty is about 35 points down, indicating a subdued opening for Indian stock markets.
US stock futures: US stock futures are trading positive with small gains at this hour. This again reinforces a short term range bound trend for US stock markets. European stocks are following the trend of US futures.
How To Day Trade:
- Like previous couple of weeks, the trend in US stock markets and US stock futures will continue to dominate world stock markets.
- These markets are trading in a range and global stocks are following that range bound trend.
- For day trading, strategies should be created keeping this sideways trend in mind.
- Major support and resistance levels (long term Fibonacci and daily pivot levels) will play crucial role in providing trade entry and exit points.
- Day traders should cut down on the numbers of their trades and look for small profits within the trading range of their markets.
World stock markets have opened this session with positive numbers. But the trend is sideways and is expected to stay choppy in different regional markets.