Binary options on Dow Jones jumped some 1.46% on Friday’s trading session with a closing asset prices at 13’075.66 as binary traders were mainly buying binary “call” options on the index on talk the Federal Reserve and the European Central Bank are set to stimulate their respective economies via monetary easing tools. The index is in overbought territory and some pull back could be seen over next session.
Since late June binary traders have been mainly buying binary “call” options on the Dow Jones to bring prices over the main resistance triangle pattern at 12’971.34. With all indicators who are near to reach the overbought territory the Dow Jones prices could have a small chance to reach the next resistance situated at 13’147.39 on the top. On the downside view a return to test the major support situated at 12’971.34 is nearly to be expected and a break of those levels could accelerate the pull back for a retest of the second range support situated at 12’553.55 and then for an objective to reach the long lower triangle line at 12’433.25 area. A break of those levels will bring back the Dow Jones prices over the 38.2% Fibonacci retracement levels at 12’231.39.
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.