March 16th, 2015 5:15am GMT, London UK
Today’s Binary Options Trading Strategy:
• Commodity: Silver
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 15.750
• Upside Potential: The upside potential for this binary call option is 110 pips to 16.850
• Downside Potential: The downside potential for this binary call option is 45 pips to 15.300Silver has stabilized inside of its horizontal support level after a corrective phase took this commodity from an intra-day high of 17.333, which was reached on February 17th 2015, to its most recent intra-day low of 15.286 which was recorded on March 11th 2015. Optimism about the US economy resulted in an outflow of capital from this commodity, but the big disappointment in advanced retail sales out of the US has caused a reversal of this trend and silver managed to drift higher guided by its ascending support level. Silver is expected to build on the current gains away from its intra-day low and advance throughout the trading week.
Price action is currently trading near the top of its horizontal support level as upside pressure is building from the drift higher. Silver is anticipated to resume its move to the upside until it approaches its descending resistance level from where a breakout is expected. Binary options traders can profit from the likely breakout with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 15.750 for a risk/reward ratio of 1.0/2.44.
Volatility remained depressed during the corrective phase, but a sharp increase is expected as silver is trapped inside a triangle formation. This will increase pressure for this commodity to either breakdown below its ascending support level, a move which is unlikely to extend below its most recent intra-day low, or breakout above its descending resistance level. Sellers may attempt to push Silver to the downside, but the ascending support level is anticipated to prevent a sustained breakdown. Buyers are expected to successfully breakout above its descending resistance level and accelerate to the bottom of its horizontal resistance level.
Silver will be faced with its first resistance level at the intersection between its ascending support level and its descending resistance level around the 15.900 mark. This is a crucial level from where a breakout will take this commodity to its intra-day low of 16.311 which was reached on February 17th 2015. This level represents the low recorded immediately after the breakdown below its horizontal resistance level. The final resistance level is located at its intra-day high of 16.890 which was reached on February 26th 2015. This level marks the bottom range of its horizontal resistance level from where more upside is unlikely.
The following economic data out of Australia already impacted Silver:
New Motor Vehicle Sales for the month of February:
• Expectations: A monthly increase of 0.6% was expected for February, an annualized increase of 0.9%
• Previous Report’s Data: A monthly contraction of 1.9% was reported in January, an annualized increase of 0.2%
• Released Data: A monthly increase of 2.9% was reported for February, an annualized increase of 4.1%
• Impact on Silver: The released data on Australian new motor vehicle sales sufficed to lift Silver which favors binary call options in this commodity
In addition the following economic report out of Canada is expected to impact Silver:
International Securities Transactions for the month of January:
• Expectations: A contraction of C$2.00 billion is expected for the month of January
• Previous Report’s Data: A contraction of C$13.55 billion was reported in the month of December
• Impact on Silver: The anticipated contraction in Canadian international securities transactions is likely to apply upward pressure on this commodity; this favors binary call options in Silver