9 April, 2021 (8:14 am IST)
8 April, 2021 (10:43 pm EDT)
Although world stock markets are showing a mixed trend, the bias is mostly negative.
US stock markets had closed positive in their overnight session, with Nasdaq gaining more than 100 points. But US stock futures are trading today near the red line, only with single digit gains. That has made world stock markets cautious.
At the time of writing, Dow Jones futures are just two points up and S&P 500 futures are 4 points up. In Asia, most of the major markets are trading negative. SGX Nifty is also down by 43 points, indicating a gap down opening in Indian stock markets.
How To Day Trade:
- As we had been discussing previously, world stock markets are range bound, trading up and down in the same weekly range.
- Yesterday, we saw a positive opening in world stock markets.
- Today, it is a negative start in global markets, a typical scenario of rangebound trend.
- For day trading, as we had written previously, rangebound trend is good if the trading range is wide.
- Thankfully, this week we have seen world stock markets trade in a broader range.
- Day traders should watch the resistance levels of their local stock markets and short sell from those levels when the price reverses from there.
- Put a stop loss and exit near support levels when the price indicates a reversal.
Today, world stock markets are trading mostly negative. This is the classic example of sideways or rangebound trend with alternate up and down sessions. Day trader should take help of resistance and support levels to trade with the minor trend within those levels.