Binary options on CAC40 soared some 4.07% on Thursday’s trading session with a closing underlying asset prices at 3’207.12. Binary traders were mainly buying binary call options on the index with heavy volume after European Central Bank President Mario Draghi pledged to do whatever is needed within the institution’s mandate to save the euro… The index is face important resistances on those levels and binary traders could see some profits taking over the next sessions.
Since late June binary traders pushed CAC40 prices inside an uptrend channel to reach the 38.2% Fibonacci resistance levels. During the beginning of the week binary traders have been mainly buying binary put options on the index and pushed prices over the lower line of the uptrend channel at 3’071.80 who was acting as major support. On yesterday trading session binary traders came to buy binary calls options and bring prices over the MA200 resistance at 3’207.12. On those levels a pull back to test the 50% Fibonacci retracements support at 3’142.80 is not excluded. A break of those levels could accelerate the fall for a test of the lower Bollinger line at 3’095.64. On the upside a closing above the higher high at 3’207.12 could bring back the CAC40 prices over the 38.2% retracement at 3’259.04 for a triple test resistance.
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.