Binary silver hovers above the 2 year support. It represents a multiple bottom and it is highly possible to continue being so. The binary traders witness reduced volatility and lack of certainty of the potential subsequent development of binary options. It is not a good strategy to try to anticipate the next wave. It could have a disastrous effect over the trading account.
Binary options on silver are trading above $26.50. It is a crucial level for the potential of the binary commodity. Should they manage to stay above it, the underlying instrument could undergo a remarkable upside move. The way down could be steep and full of pain for the binary call option buyers. There are no downward obstacles. The binary silver could easily reach $18.00. It sounds difficult to do so being at the current heights. However, the binary market history has witnessed even worse cases.
The binary traders are at the threshold. Most probably the binary commodity will find enough call option buyers to bounce off the lows. However, it could make a false break just to lure the market participants to buy put options. The 5 and 9 EMA`s are just above the binary options on silver pushing them lower. To say that a reversal has occurred, it is necessary that the trading vehicle break and close above the moving averages.
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.
