Binary FTSE100 suffered a temporary setback yesterday. Global sell-off wave hit the British coast. Some binary traders could consider it as just a correction of the recent upside move. It could be so. However, there is still room for increased downside pressure. The problems in Europe are not resolved, not have even started to get resolved. So, the volatility is likely to continue being the driving force for the binary markets.
The binary index has completed an interesting pattern on the 15min chart. It is the so called Head-and-Shoulders. It has taken 3 days for the completion of the chart pattern. The neckline of the model is drawn from 5565 points through 5575 points. It has been broken with a wide negative candle. The subsequent 2 candles tested the trend line and did not manage to break above it. The development of the model is by the book. The distance between the top of the head and the neckline is about 70 points.
After the downside breakout, the binary options managed to advance by 70 points. It is the typical move in points in such situations. It was expected to undergo an upside correction after reaching 5500 points. It turns out to be the current scenario. Potential upside targets are 5540 points, followed by 5560 points.
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.