Binary Oil is trying to hold ground this week. The binary commodity seems to be oversold after losing more than $30 since March. It is not unusual to mark such loses. However, the binary traders are wondering where the downtrend could stop before finding enough strength to reverse the negative tendency. The summer has come and the consumption of fuel is about to increase. So, the binary traders should be on their watch for a quick upside move.
Binary options on oil are closed in a tight range of $2 for the last 3 days. There is not a clear subsequent development of the underlying instrument. The binary market expects a continuation of the downside move. However, the binary traders should know that when the major part of the market expects some direction to be valid beyond a normal time span, violent reversals could occur in order to take the money of the market participants. The downside tendency is still on the screen and it attracts many binary put option buyers.
However, the binary commodity is oversold and it could undergo at least a correction if not a reversal. The economic problems continue aggravating and the economists try to convince the binary market that it leads to a reduced consumption of oil especially from the big countries like China and Europe, but it does not mean an endless slide in its price.
The binary options have found temporary support at 88.6% of retracement from the whole move from $75 to $110. It could turn out to be the last obstacle for the binary oil, before plunging further below $75.
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.
