Today’s Binary Options Trading Strategy:
• Equity Index: FTSE100
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 6,520.00
• Upside Potential: The upside potential for this binary call option is 55,000 pips to 7,070.00
• Downside Potential: The downside potential for this binary call option is 22,500 pips to 6,295.00
The FTSE 100 was exposed to a combination of unfavorable fundamental data which mixed with technical factors; this created a new wave of selling pressure and forced this equity index into a steep corrective phase. The FTSE 100 traded down from its intra-day high of 7,071.50 which was recorded on May 29th 2015 to its most recent intra-day low of 6,500.50 reached yesterday on July 6th 2015.
Binary options traders interested in UK options trading are advised to add today’s FTSE 100 binary call option recommendation to their trading account due to its limited downside potential and attractive upside potential.
Price action is now trading inside of its horizontal support level and at the descending support level of its bearish price channel. The FTSE 100 is expected to breakout above its descending resistance level from where this equity index can accelerate to the upside. Binary options traders can profit from the expected move to the upside with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips
below 6,520.00 for a risk/reward ratio of 1.0/2.44.
Volatility decreased as this equity index receded inside of its bearish price channel and the FTSE 100 neither broke out above its descending resistance level nor broke down below its descending support level. An increase in volatility is anticipated as the bearish price channel is being intersected by its horizontal support level.
Sellers are likely to keep downward pressure at elevated levels while buyers are expected to attempt a push to the upside and force a reversal. This favors binary call options in this equity index.
The FTSE 100 will face its first resistance level at its intra-day high of 6,648.50 which was reached on July 2nd 2015. This level represents the high of a previous drift to the upside. A breakout above this level will take the FTSE 100 to the descending resistance level of its bearish price channel around the 6,700.00 mark. The next resistance level awaits the FTSE 100 at its intra-day high of 6,873.50 recorded on June 24th 2015 form where the descending resistance level reversed a previous advance. The final resistance level is located at its intra-day high of 7,071.50 which was reached on May 29th 2015; a double top formation may emerge and prevent further upside.
The following economic data out of the United Kingdom is expected to impact the FTSE 100:
Industrial Production for the month of May:
• Expectations: A monthly contraction of 0.2%is expected for May, an annualized increase of 1.6%
• Previous Report’s Data: A monthly increase of 0.4% was reported in April, annualized increase of 1.2%
• Impact on the FTSE 100: The expected annualized increase in industrial production is likely to pressure this equity index to the upside which favors binary call options in the FTSE 100
In addition the following economic report out of the United Kingdom is also expected to impact the FTSE 100:
Manufacturing Production for the month of May:
• Expectations: A monthly increase of 0.1% is expected for May, an annualized increase of 1.8%
• Previous Report’s Data: A monthly contraction of 0.4% was reported in April, an annualized increase of 0.2%
• Impact on the FTSE 100: The anticipated increase in manufacturing production is likely to pressure the FTSE 100 to the upside; this favors binary call options in this equity index
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