Binary options on S&P500 fell some 0.05% on Monday’s trading session with closing underlying prices at 1’385.30.Binary traders have traded in a narrow range despite easing speculation that the Federal Reserve and European Central Bank’s policy meetings will signal fresh stimulus measures to support growth. After reaching important resistances the S&P500 could edge in lower levels over the next sessions.
After reaching the 38.2% Fibonacci retracement support in late June, binary traders have been mainly buying of binary “call” options on the index and brought S&P500 prices inside an uptrend channel clearly defined for reaching the upward Bollinger line resistance situated at 1’384.28. On those levels the index has the possibility to test one more time the top resistance situated at 1’391.74. A break of those levels could accelerate the rebound for testing the triple top resistance on higher high at 1’422.38. With all indicators who are running inside the overbought territory there is a good chance for the downside view for a break of the major support situated at 1’378.28 and could pull back prices over the lower line of the channel at 1’334.09.
The information in the above 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.