April 20th, 2015 6:29am 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 16.400
• Upside Potential: The upside potential for this binary call option is 70 pips to 17.100
• Downside Potential: The downside potential for this binary call option is 40 pips to 16.000Silver has retreated from its most recent intra-day high of 17.313 which was reached on April 6th 2015. This intra-day high represents a lower high as compared to its previous intra-day high of 17.402 which was recorded on March 26th 2015. The corrective phase took Silver down to its intra-day low of 15.995 which was reached on April 14th 2015. This level marked a false breakdown below its horizontal support level from where this commodity bounced higher until it recorded an intra-day high of 16.511 on April 16th 2015. Volatile trading caused price swings, but an ascending support level emerged as a result of it.
Price action is currently trading inside of its horizontal support level which is being enforced by its ascending support level. Silver is anticipated to take the bounce off of its ascending support level and accelerate to the upside until it can challenge its descending resistance level. Binary options traders can take advantage 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 16.400 for a risk/reward ratio of 1.0/1.75.
Silver was exposed to a contraction in volatility which accompanied its corrective phase, but the hectic trading which emerged after its false breakdown below its horizontal support level has resulted in an increase in volatility which is expected to increase further as this commodity is trading inside of a wide triangle formation. Sellers are likely to attempt a breakdown below its ascending support level in order to extend the corrective phase. Buyers are expected to accelerate to the upside from its enforced support level. This favors binary call options in Silver.
The first resistance level, after a successfully breakout above its horizontal support level, awaits Silver at its intra-day high of 16.675 which was reached on April 10th 2015. This level represents the intra-day high prior to the move down into its current intra-day low. A breakout above this level will take Silver to its intra-day high of 16.914 which was recorded on April 8th 2015. This level marks the high of a minor drift to the upside before the corrective phase accelerated to the downside. The final resistance level for Silver is located at its descending resistance level around the 17.100 mark which also represents the bottom of its horizontal resistance level.
The following economic data out of Japan already impacted Silver:
Tertiary Industry Index for the month of February:
• Expectations: A monthly contraction of 0.7% was expected for February
• Previous Report’s Data: A monthly increase of 0.7% was reported in January
• Released Data: A monthly increase of 0.3% was reported for February
• Impact on Silver: The released data from the Tertiary Industry Index applied upward pressure on this commodity which favors binary call options in Silver
In addition the following economic report out of the United States is expected to impact Silver:
Chicago Federal Reserve National Activity Index for the month of March:
• Expectations: A level of 0.10 is expected for the month of March
• Previous Report’s Data: A level of -0.11 was reported in the month of February
• Impact on Silver: The expected reading out of the Chicago Federal Reserve National Activity Index is likely to apply upward pressure on Silver which favors binary call options in this commodity