Binary FTSE100 is trading in consolidation this week. This is the typical aspect of all binary indexes recently. They are far from being oversold and are struggling to maintain the upside direction. The binary traders are reluctant to bid the trading vehicle at current levels assessing the binary options as being overbought. Only new evidences of improving economic landscape could urge the market participants to continue buying binary call options.
The binary traders could realize the complex technical picture of the binary index looking at the 1h chart. It has completed a chart pattern called Diamond. When the aforementioned price model appears at the top of a move if gives a bearish signal to the market participants. It is one reason to buy binary “put” options. Furthermore, there is a cluster of Fibonacci grids just at the top of the chart pattern supporting the downward signal.
The wave from 5640 points to 5430 points has been retraced 127.2% at 5700 points. The wave from 5540 points has been retraced 261.8% at 5710 points. It seems as though every aspects of the technical analysis are favoring the downside move. The binary index will be influenced by the U.S. job report today.
Potential downside targets are 5655 points, followed by 5640 points.
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.
