Silver Binary Put Option – May 11th 2015
GOption | May 11, 2015 01:34AM ET
Today’s Binary Options Trading Strategy:
• Commodity: Silver
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary put options on rallies above 16.400
• Upside Potential: The downside potential for this binary put option is 80 pips to 15.600
• Downside Potential: The upside potential for this binary put option is 35 pips to 16.750
Silver has been exposed to a hectic trading pattern which emerged after this commodity reached its intra-day low of 15.598 on April 24th 2015. A sharp advance followed and spiked Silver to an intra-day high of 16.732 which was recorded on April 30th 2015. This level is located just above its horizontal resistance level from where Silver dropped to a higher low with an intra-day low of 15.815 which was also recorded on April 30th 2015. Fundamental factors have contributed to this sharp drop. The higher low allowed for the formation of an ascending support level which advanced Silver to a higher high with an intra-day high of 16.761 reached on May 4th 2015.
Price action is now trading inside of its horizontal resistance level after the formation of a descending resistance level exercised downward pressure on this commodity. Silver is anticipated to resume its drift to the downside until a breakdown below its ascending support level will develop. Binary options traders can take advantage from the expected breakdown with binary put options. Today’s binary options trading strategy suggests put options to be placed on rallies above 16.400 for a risk/reward ratio of 1.0/2.29.
Silver was exposed to an increase in volatility which accompanied the violent trading pattern and volatility is expected to increase further as this commodity is trapped inside of a triangle formation. The intersection between its ascending support level and its descending resistance level is located just beneath its horizontal resistance level. Buyers are expected to pressure Silver to the upside, but its most recent intra-day high of 16.761 is anticipated to prevent an extension of the advance. Sellers are likely to successfully force a breakdown below its ascending support level from where this commodity can accelerate down into its horizontal support level.
The first support level awaits Silver at its intra-day low of 16.173 which was recorded on May 7th 2015. This level represents the last instance where the ascending support level reversed a drift to the downside. A breakdown will clear the way down to its intra-day low of 15.815 which was reached on April 30th 2015. This level marks the top end of its horizontal support level. The final support level is located at its intra-day low of 15.598 which was recorded on April 24th 2015 from where a double bottom formation may emerge.
Get The News You Want
The following economic data out of China already impacted Silver:
People’s Bank of China One-Year Lending Rate:
• Expectations: A One-Year Lending Rate of 5.35% was expected
• Previous Announcement: A One-Year Lending Rate of 5.35% was reported
• Released Data: A One-Year Lending Rate of 5.10% was reported
• Impact on Silver: The unexpected cut in the One-Year Lending Rate out of the PBOC has failed to pressure Silver to the upside which favors binary put options in this commodity
In addition the following economic report out of the United Kingdom is expected to impact Silver:
Bank of England Interest Rate Announcement & Asset Purchase Target:
• Expectations: The interest rate unchanged at 0.50%, the Asset Purchase Target unchanged at £375 billion
• Previous Announcement: The interest rate unchanged at 0.50%, the Asset Purchase Target unchanged at £375 billion
• Impact on Silver: The statement which will follow the announcement may not suggest any change in the status quo and is likely to pressure this commodity to the downside which favors binary put options in Silver
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.