Binary options on oil are slowly retreating after managing to add some 13% a week ago. It is a normal corrective reaction. The binary traders should wait for some clues on whether the downside pressure is about to increase. It is highly possible that the way up be open for trading. There are some reasons to think that buying binary call options is the best short-term strategy.
It is hard sometimes to trade the binary asset. It is influenced by many political, economic and currency factors. However, the tools of technical analysis are applicable anyway. The binary traders could not gauge the impact of all news over the binary options. So, they should make assumptions on where the binary commodity is headed to.
The binary trading vehicle has reached 38.2% of retracement from the whole move comprising the zone between $106.00 and $77.00. At this moment the greenback has experienced a tremendous appreciation and as a result the binary oil lost some ground. It could be short-lived and the underlying asset could gather much more strength to break the resistance.
Currently, the binary options are just above EMA200 and EMA21 which are crossing at $86.00. Typically, it is a very strong combination of moving average and less risky setup to start buying binary call options. It could turn out to be very strong support opening the door for an upside rush.
Potential upside targets are $88.50, followed by $91.85.
Should the binary options fall below $86.00, potential downside targets are $84.60, followed by $83.20.
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.
