25 September 2020 (7:53 am IST)
24 September 2020 (10:23 pm EDT)
This is the last trading session of the week in world stock markets. Be ready with your trading strategies that will suit today’s market conditions. What will be those conditions? Let’s take a look at various factors that will decide the trend today.
US stock markets closed slightly positive. Major indexes did not gains even 100 points, which shows how weak that positive session was. Dow Jones made a “bottom hammer” candlestick which, in normal times, indicates a trend reversal. In the current market conditions, this may get some feeble gains but Dow Jones will not come out of a downtrend until the index crosses above 27,550 mark. So, bears can sit back and relax, waiting for another rebound from higher levels.
At the time of writing, all major Asian stock markets are trading positive. SGX Nifty is 50 points higher. US and European stock futures are trading positive, with healthy gains. If these gains sustain through the global session, then we can expect a positive opening in these big markets. But, the closing? Will that also be positive? For a moment, think you are a big investor and today you buy some positions. Will you be willing to leave those positions open through the weekend? Meh. Yes, that’s why keep an eye how US stock markets close for the weekend. That will decide the next week’s opening in world stock markets.
How To Day Trade:
- World stock markets are trading positive in the early session, following the lead of US stock markets that had closed positive in their overnight session.
- The overall trend is down.
- In between, we may see such highly volatile and small rebounds.
- The best trading strategy would be to wait for this rebound to end and start of the downtrend again.
- The rebounds will bring small profits. Short selling from the right level (resistance) will bring jackpots.
World stock markets had a highly negative month and weekly session this week. The intraday session has started with positive numbers today. But, day traders should stay cautious and trade only if the price rises from support levels. If a resistance level stops the price moment, they should exit their long positions and be ready for short trading.