Today’s Binary Options Trading Strategy:
• Commodity: Gold
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 1,175.00
• Upside Potential: The upside potential for this binary call option is 3,000 pips to 1,205.00
• Downside Potential: The downside potential for this binary call option is 1,230 pips to 1,162.70
Gold is approaching the end of its corrective phase which dropped this commodity from its intra-day high of 1,205.70 which was recorded on June 18th 2015. The move to the downside touched the lower end of its horizontal support level with an intra-day low of 1,169.54 reached on June 24th 2015. This represents a higher low as compared to its previous intra-day low of 1,162.70 recorded on June 5th 2015 from where its ascending support level emerged. Commodities option trading can be very profitable and today’s binary call option in Gold possesses plenty of upside momentum with limited downside potential.
Price action is currently trading inside of its horizontal support which is being additionally strengthened by its ascending support level. Gold is expected to stabilize around current levels and accelerate to the upside. Binary options traders can take advantage from the anticipated move higher with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 1,175.00 for a risk/reward ratio of 1.0/2.44.
Gold was exposed to a contraction in volatility which accompanied the move to the downside, but binary options traders who wish to diversify their trading accounts with commodities option trading should anticipate an increase in volatility. Buyers and sellers are set to square off inside of an enforced horizontal support level. Sellers are likely to increase downward pressure, but a sustained breakdown is unlikely to develop from inside of its horizontal support level. Buyers are expected to use its enforced support level as a platform for an accelerated move to the upside. This favors binary call options in Gold.
The first resistance level for Gold is located at its intra-day high of 1,188.08 reached on June 23rd 2015. This level represents the high of a minor bounce to the upside before Gold resumed its corrective phase. A breakout above this level will take Gold to its intra-day high of 1,192.28 which was recorded on June 10th 2015 from where the path to the upside is cleared to its intra-day high of 1,197.32 reached on June 1st 2015. The final resistance level is located at its intra-day high of 1,205.70 which was recorded on June 18th 2015.
The following economic data out of New Zealand already impacted Gold:
Trade Balance for the month of May:
• Expectations: A monthly trade deficit of NZ$100 million was expected for May, an annualized trade deficit of NZ$2,835 million
• Previous Report’s Data: A monthly trade surplus of NZ$183 million was reported in April, an annualized trade deficit of NZ$2,656 million
• Released Data: A monthly trade surplus of NZ$350 million was reported for May, an annualized trade deficit of NZ$2,570 million
• Impact on Gold: The reported trade deficit applied upward pressure on Gold which favors binary call options in this commodity
In addition the following economic report out of the Eurozone is expected to impact Gold:
German Import Price Index for the month of May:
• Expectations: A monthly increase of 0.2% is expected for May, an annualized contraction of 0.4%
• Previous Report’s Data: A monthly increase of 0.6% was reported in April, an annualized contraction of 0.6%
• Impact on Gold: The expected annualized contraction in German import prices is likely to pressure this commodity to the upside; this favors binary call options in Gold
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