Binary FTSE100 is trading in a tight range for the last 10 days. The binary index seems having some serious problems, in advancing recently after managing to gain almost 10% since the beginning of June. The binary traders are reluctant to continue bidding. They might be assessing the underlying asset as being overbought at current levels. Hence, it could be a good strategy to buy binary options.
Binary options on FTSE100 could be losing some steam. However, there are some reasons to think that the move has some strength and the upside direction is not completely shut. The underlying index is trading above EMA200. As it is well-known the bears live below the line and the bulls live above it. So, it is possible that the moving averages play a role as a support, for the binary options. Moreover, the binary asset is trading above 5 and 9 exponential moving averages. They are trend supporting technical instruments.
It will not be a big surprise today, if the binary options touch 5700 points. It represents a short-term resistance for now and it is the threshold between a deep correction and a continuation of the upside rush. The wave from 5825 points to 5225 points has been retraced 78.6% just at the aforementioned level. Most probably the downside pressure would increase after the binary instrument reaches the strong mark.
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.
