The Spanish index started the session lower making “put” options most profitable in the first hours of the trading. However after it touched 6500, binary IBEX35 is gaining back to 6530. 6500 is key support level since mid-June and break below it is expected to send the index lower towards the psychological 6000. On the upside if the correction continues first resistance for the day is expected at 6600, followed by 6850. In longer term key resistance level is 7219.50, which is three month top.
The overall picture remains negative and binary investors should watch for resistance levels to buy “put” options. On the other hand “calls” are appropriate with shorter expiry options catching reversals around support levels (something which was clearly seen today after the drop to 6500).
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.