Sometimes it is hard to determine if a given binary instrument has enough strength to continue appreciating or losing ground. The binary traders have always an idea of the subsequent development but they never know if it is the right choice. They should take their risks based on some assumptions. It is very important that the decision be informed. Binary IBEX35 is on the verge of losing ground currently. It is following the global tendency of uncertainty. The volatility is increasing and is leading to awesome opportunities for the binary traders. Sideways moves are huge. However, the upside pressure decreases and the binary traders should feel the pulse of the market in order to place better bets and to be profitable.
The future development of the binary index does not seem to be bright. S&P affirms Spain rating at BBB+, but the outlook is negative. It is a source of extended volatility in the coming days. Moreover, EU is expecting Spain`s multi-year budget framework this week. It is possible to witness violent sideways moves because should the binary traders assess the numbers as negative.
The technical outlook of the binary index remains bearish. The binary options have faced a significant resistance reaching 6920 points. It falls on a very important trend line drawn from 8600 points through 7210 points. The move from 7210 points to 5950 points has been retraced 78.6% just at 6920 points. So, it is not surprising that the downside pressure has been triggered from that level.
Currently, the binary index is trading around 6600 points or 300 points below yesterday`s high. The downside move is likely to continue in the coming days. Potential targets are 6500 points, followed by 6250 points.
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.