June 16th, 2015 4:58 GMT, London UK
Today’s Binary Options Trading Strategy:
• Equity Index: S&P 500
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 6,720.00
• Upside Potential: The upside potential for this binary call option is 36,500 pips to 7,085.00
• Downside Potential: The downside potential for this binary call option is 12,000 pips to 6,600.00
The FTSE 100 has corrected away from its most recent intra-day high of 7,071.50 which was recorded on May 29th 2015. This equity index was guided lower by its bearish price channel; the descending support level emerged from its intra-day low of 6,928.50 reached on May 26th 2015 while the descending resistance level originated from its intra-day high of 7,071.50. Additionally this intra-day high marked a lower high as compared to its previous intra-day high of 7,086.50 which was recorded on May 11th 2015. The bearish price channel remains intact, but binary option traders seeking to diversify through option trading stocks are advised to look into binary call options in the FTSE 100.
Price action is currently trading inside of its horizontal support level from where downward pressure is being depleted. The FTSE 100 is expected to stabilize and reverse its bearish price channel in order to challenge its horizontal resistance level. Binary options traders can take advantage from the anticipated reversal with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 6,720.00 for a risk/reward ratio of 1.0/3.04.
The FTSE 100 witnessed a contraction in volatility as it retreated inside of it bearish price channel, but as its newly formed horizontal support level emerged a sharp spike in volatility is likely to occur. Sellers may use the bearish price channel in order to pressure this equity index into a breakdown below its horizontal support level. Buyers are expected to force a price action reversal after a successful breakout above its bearish chart pattern. This favors binary call options in the FTSE 100.
The first resistance level for this equity index is located at its intra-day high of 6,869.50 which was reached on June 16th 2015. This level represents the high of a previous price action reversal which was halted by the descending resistance level of its bearish price channel. A breakout above this level will take the FTSE 100 to its intra-day low of 6,928.50 recorded on May 26th 2015 from where its descending support level emerged. The final resistance level awaits the FTSE 100 at its intra-day high of 7,086.50 which was reached on May 11th 2015.
The following economic data out of the United Kingdom is expected to impact the FTSE 100:
Annualized Consumer Price Index & Core Consumer Price Index for the month of May:
• Expectations: A annualized increase of 0.1% in the CPI is expected for May, an annualized increase of 1.0% in the core CPI
• Previous Report’s Data: A annualized contraction of 0.1% in the CPI was reported in April, an annualized increase of 0.8% in the core CPI
• Impact on the FTSE 100: The anticipated increase in the annualized CPI as well as core CPI is likely to apply upward pressure on this equity index which favors binary call options in the FTSE 100
In addition the following economic report out of the United Kingdom is expected to impact the FTSE 100:
Retail Price Index for the month of May:
• Expectations: A monthly increase of 0.3% is expected for May, an annualized increase of 1.1%
• Previous Report’s Data: A monthly increase of 0.4% was reported in April, an annualized increase of 0.9%
• Impact on the FTSE 100: The expected annualized increase in the RPI is likely to pressure the FTSE 100 to the upside; this favors binary call options in this equity index