Oil Binary Call Option – July 8th 2015
GOption | Jul 08, 2015 08:38AM ET
Today’s Binary Options Trading Strategy:
• Commodity: Oil
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 52.00
• Upside Potential: The upside potential for this binary call option is 975 pips to 61.75
• Downside Potential: The downside potential for this binary call option is 200 pips to 50.00
Oil has been exposed to a very steep corrective phase which dropped this commodity from its intra-day high of 61.54 reached on June 24th 2015 to its intra-day low of 50.56 which was recorded yesterday on July 7th 2015. Economic data has contributed to the outflow of capital from Oil which is now struggling to find stability in order to deflate further downward pressure. Many new binary option traders are wondering: Is trading options profitable? Today’s binary call option in Oil has all the right attributes for a highly profitable binary option trade.
Price action is now trading inside of its horizontal support level from where this commodity tries to stabilize. Oil is expected to reverse its steep corrective phase in order to challenge its horizontal resistance level. Binary options traders can take advantage from the expected advance with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 52.00 for a risk/reward ratio of 1.0/4.88.
Oil experienced a contraction in volatility which accompanied its corrective phase, but volatility started to increase as price action reversed what may have been a capitulation low. Commodity traders seeking to enter binary call options should expect volatility to rise further as buyers and sellers are set to square off inside of a crucial support level. The downtrend may be taken as a platform by sellers to force another breakdown in order to extend the current corrective phase.Buyers are anticipated to successfully pressure this commodity into a full price action reversal from current levels. This favors binary call options in Oil.
The first resistance level awaits this commodity at its intra-day high of 53.56 which was reached yesterday on July 7th 2015 and represents the high of its initial bounce off of its horizontal support level. A breakout above this level will take Oil to its intra-day high of 55.31 recorded on July 7th 2015 from where another breakdown will clear the path to its intra-day high of 57.91 which was reached on July 2nd 2015. The next resistance level is set at its intra-day high of 59.66 recorded on June 30th 2015 while the final resistance level is located at its intra-day high of 61.79 which was reached on June 10th 2015.
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The following economic data out of Japan is expected to impact Oil:
Eco-Watchers Survey for the month of June:
• Expectations: A level of 53.0 is expected in the Current Index for the month of June, a level of 54.0 in the Outlook Index
• Previous Report’s Data: A level of 53.3 was reported in the Current Index for the month of May, a level of 54.5 in the Outlook Index
• Impact on Oil: The anticipated reading out of the Eco-Watchers Survey may suffice to apply upward pressure on Oil;this favors binary call options in this commodity
In addition the following economic report out of the United States is also expected to impact Oil:
Energy Information Agency Gasoline Inventories for the week of July 3rd 2015:
• Expectations: A draw down of 2,132,000 barrels is expected for the week of July 3rd 2015
• Previous Report’s Data: A drawdown of 1,757,000 barrels was reported in the week of June 26th 2015
• Impact on Oil: The expected draw down in gasoline inventories is likely to pressure this commodity to the upside which favors binary call options in Oil
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