Gold Binary Call Option – July 3rd 2015
GOption | Jul 03, 2015 03:03AM ET
Today’s Binary Options Trading Strategy:
Today’s Binary Options Trading Strategy:
• Commodity: Gold
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 1,167.00
• Upside Potential: The upside potential for this binary call option is 3,800 pips to 1,205.00
• Downside Potential: The downside potential for this binary call option is 900 pips to 1,157.10
Gold has retreated away from its intra-day high of 1,205.70 which was recorded on June 18th 2015 inside of it bearish price channel. The descending support level can trace it origin to its intra-day high of 1,190.67 reached on June 15th 2015 while the descending resistance level emerged from its intra-day high of 1,205.70. The corrective phase took this commodity below its horizontal support level with an intra-day low of 1,157.04 which was recorded yesterday on July 2nd 2015. This was the result of economic data released out of the United States. Gold is a very popular asset used for binary options news trading.
Price action is now trading inside of its horizontal support level from where downward momentum is being depleted. Gold is anticipated to drift into its descending resistance level from where a breakout is favored. Binary options traders can benefit 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 1,167.00 for a risk/reward ratio of 1.0/4.22.
Volatility contracted sharply as price action retreated inside of its bearish price channel, but binary options traders should be prepared for an increase in volatility as buyers and sellers are set to test its horizontal support level. Sellers could try to keep the move lower intact and push for more downside inside of its bearish chart formation, but the most recent intra-day low may not be violated. Buyers are anticipated to take the current pause in its corrective phase as a platform in order to force a breakout above its descending resistance level. This favors binary call options in this commodity.
Gold will face its first resistance level at its intra-day low of 1,172.78 recorded on June 15th 2015. This level marks the low of a previous drift to the downside. A breakout above this level will take Gold to its intra-day high of 1,190.67 which was reached on June 15th 2015 from where the descending support level of its bearish price channel originated. A breakout will clear the path for this commodity to accelerate to its final resistance level which is located at its intra-day high of 1,205.70 recorded on June 18th 2015. A double top formation may emerge and prevent further upside.
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The following economic data out of Australia already impacted Gold:
Retail Sales for the month of May:
• Expectations: An increase of 0.5% was expected for the month of May
• Previous Report’s Data: A contraction of 0.1% was reported in the month of April
• Released Data: An increase of 0.3% was reported for the month of May
• Impact on Gold: The reported lower-than-expected increase in Australian retail sales has pressured this commodity to the upside; this favors binary call options in Gold
In addition the following economic report out of the Eurozone is expected to impact Gold:
Eurozone Retail Sales for the month of May:
• Expectations: An increase of 0.1% is expected for the month of May, an annualized increase of 2.3%
• Previous Report’s Data: An increase of 0.7% was reported in the month of April, an annualized increase of 2.2%
• Impact on Gold: The anticipated monthly slowdown in Eurozone Retail Sales is likely to apply upward pressure on Gold which favors binary call options in this commodity
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