Today’s Binary Options Trading Strategy:
• Commodity: Gold
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 1,193.50
• Upside Potential: The upside potential for this binary call option is 3,065 pips to 1,224.15
• Downside Potential: The downside potential for this binary call option is 1,510 pips to 1,178.40
Gold has retreated sharply from its intra-day high of 1,224.18 which was recorded on April 6th 2015 and the corrective phase lasted until this commodity reached an intra-day low of 1,184.29 yesterday on April 23rd 2015. This level represents a higher low as compared to its previous intra-day low of 1,178.38 which was recorded on March 31st 2015. An ascending support level has formed as a result which is now enforcing its horizontal support level and increasing upward pressure on Gold.
Price action is currently trading just above of its horizontal support level from where downward momentum is being replaced by upward momentum. Gold is expected to advance into its descending resistance level from where a breakout is favored to lead the path into its horizontal resistance level. Binary options traders can take advantage from the anticipated breakout with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 1,193.50 for a risk/reward ratio of 1.0/2.03.
Volatility decreased during its corrective phase, but an increase in volatility is expected as buyers and sellers are set to face off inside of an enforced support level. Sellers are expected to keep the downtrend intact and pressure this commodity down into its ascending support level which is not expected to be violated to the downside. Buyers are anticipated to take the current drift to the upside into its descending resistance level from where a breakout is likely to take this commodity into its horizontal resistance level. This favors binary call options in Gold.
Gold will face its first resistance level at its intra-day high of 1,209.15 which was reached on April 20th 2015. This level represents the high of a previous advance and the last instance where the descending resistance level forced a price action reversal. A breakout above this level will take this commodity to its intra-day high of 1,218.73 which was recorded on April 6th 2015. This intra-day high marks the bottom of its horizontal resistance level. The final resistance level is located at its intra-day high of 1,224.18 which was reached on April 6th 2015.
The following economic data out of Japan is expected to impact Gold:
All Industry Activity Index for the month of February:
• Expectations: A monthly contraction of 1.0% is expected for February
• Previous Report’s Data: A monthly increase of 1.9% was reported in January
• Impact on Gold: The anticipated contraction in the All Industry Activity Index out of Japan is likely to apply upward pressure on Gold which which favors binary call options in this commodity
In addition the following economic report out of the Eurozone is expected to impact Gold:
German IFO Report for the month of April:
• Expectations: A reading of 108.4 is expected out of the German IFO Business Climate Index for the month of April, a reading of 112.4 out of the German IFO Current Assessment Index and a reading of 104.5 out of the German IFO Expectations Index
• Previous Report’s Data: A reading of 107.9 was reported in the German IFO Business Climate Index for the month of March, a reading of 112.0 in the German IFO Current Assessment Index and a reading of 103.9 in the German IFO Expectations Index
• Impact on Gold: The expected increase out of the German IFO report is likely to pressure this commodity to the upside; this favors binary call options in Gold
Original post