Binary Gold continues being locked into a consolidation for the last 3 months and the volatility is decreasing. The zone for trading is becoming largerly tight and it will be difficult to trade. Binary traders are wondering which would be the next development of the binary asset. The breakout is under way and the subsequent price action will be significant.
The binary commodity is completing a symmetrical triangle formation. The chart pattern gives a clear support and resistance levels so far. The support is drawn from $1530 through $1550. The last test of the trend line has been at $1550 and it turned out to be a sound level for buying binary call options. The resistance is drawn from $1640 through $1620 and the apex of the model is approaching. Probably, the binary options will not be traded in a zone comprising less than $30. Hence, it is a matter of one or maximum two weeks for the breakout to occur.
Currently, the underlying asset is headed upward. It is backed by 5 and 9 exponential moving averages giving perfect opportunities for the binary call option traders to place their orders and profit from the distance between the binary options and the resistance line. It is a zone of some $18 good enough for placing intraday and swing trading orders.
Potential targets are $1613, followed by a false breakout targeting EMA200 at $1623.
Disclaimer:
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.
