19 November 2020 (7:41 am IST)
18 November 2020 (9:11 pm EST)
World stock markets are showing a classic example of a technical trend this week. After a rally, some rangebound session, and now a negative turn; just like surfing a wave.
US stock markets have opened positive but closed with highly negative numbers. Dow Jones lost more than 300 points and closed at the lowest point of the day, which is a negative signal.
US stock futures are still trading negative in Asia session, which has shaken the confidence of global stocks. That is why all major Asian stock markets are trading in the red. SGX Nifty is 100 points down, showing a lower opening for Indian stock markets too.
How To Day Trade:
- The weekly trend in world stock markets has turned negative, but still range bound in the last week’s trading range.
- This will keep markets highly volatile and make day trading difficult for traders.
- Why difficult? Because the price will move up and down between support and resistance levels and can cause overtrading
- . This will eat into the trading capital of day traders but bring little profit or bigger losses.
- Therefore, day traders should trade cautiously and first wait for a clear trend.
- Today, we can expect a rangebound trend or a downtrend.
- If the trend is rangebound, follow horizontal support and resistance levels.
- Trendline will not work in a rangebound trend.
- But in a declining trend, a trendline will show you the trend clearly and bring you good profits.
World stock markets are trading negative in this session, Negative US stock futures after a negative session in US stock markets have triggered this trend. Global stocks will trade within the last week’s range and day traders should pay attention to that range.