Binary options on Dow Jones Industrials rallied at the end of the yesterday`s trading session. Binary traders were buoyed by the statement of the European leaders. They have agreed on recapitalizing the euro zone banks without adding to government debt. It soothed the fears over growing credit deficit in Italy and Spain. The upside tendency continues expanding on Friday.
Many traders ask the question if the binary index has enough strength to push higher. The sustainability of the direction might be the most important point for now. The released news on the EU summit means nothing without more clear evidence of the steps that should be taken in order to achieve the main idea- Euro zone stability. Often the European institutions try to maintain the stability of indexes only verbally without taking any measures. It has just a temporary effect and the subsequent consequences are hard to be evaluated. This is not the way to impact the mood of binary market participants. Real measures should be taken to alleviate the negative European outlook.
Currently, the binary options on DJI are facing an impenetrable resistance at first glance. It is around 12730 points. They try to overtake it during all the European session but it still stands. Should the binary index manage to break above the aforementioned level, it could reach new yearly high beyond 13300 points. There is a triangle pattern shaping the binary options. The resistance is drawn from 13330 points through 12850 points. The support is drawn from 12000 points through 12550 points. Currently, the binary options are just below the important resistance.
It is more realistic to think that the downside pressure will increase. Binary markets offer many surprises and sometimes the unthinkable becomes a reality. That is their magic. Of course, the big institutions manipulate the binary traders` psychology with rosy promises and analysts` fables.
Binary traders should beware of what the institutions and their analysts want to tell them because the only purpose is to take other traders money.
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.