Binary NIKKEI225 tries to recover from the losses incurred yesterday. Global uncertainty and concerns about the health of the world economy urged many binary option traders to dump their call options and to buy put options before the end of the trading week. Volatility continues being a la mode and it is possible to go further.
Binary NIKKEI225 is pushing higher after the sell-off experienced yesterday. It is a normal bargain hunting reaction. However, it could be short-lived very quickly and the slide could resume. The binary options are traded in a triangle pattern. Today, the trading session started on a lower note, but managed to find support just at the lower band of the aforementioned formation at 8700 points. The support is drawn from 8200 points through 8500 points. The resistance is drawn from 8500 points through 8700 points. Yesterday`s high came in at 8890 points. It falls just at the resistance.
The chart pattern is approaching the apex. The zone for trading within its boundaries is becoming very tight. So, the breakout is under way. The only thing that matters is its direction. Binary traders should follow the behavior of the binary options when touching the 5 and 9 exponential moving averages. Should they use them as a support, it could be appropriate to buy binary call options. Break below 8650 points will encourage the binary bears to buy put options.
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.