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Daily Binary Options Analysis for February 17, 2017
The price of the EUR/USD binary option continued with its expansion above the last resistance at $1.0640. As a result, the pair reached the next resistance level at $1.0680 and bounced downwards to test the already broken $1.0640 level as a support.
The hourly chart of the EUR/USD shows the current price expansion that appears as a result of the bullish breakout through the recent green bearish channel. Having in mind that the price action breaks resistances on the way up and turns them into supports, we believe that the EUR/USD will bounce from the already broken $1.0640 to initiate a further price increase.
In this relation, the price action might interact again and even break the $1.0680 resistance. If this happens, we will have a new high on the chart.
The Oil prices attempt again to switch below the green bullish trend line that has been a factor during the last month. This way the price action puts emphasize on the previous bounce from the orange bearish channel that we expect to cause another interaction with the lower level of the channel.
Above you see the chart of the Brent Crude binary option. In the red circle, we see the break through the green bullish trend. As a result, the price action is currently interacting with the support at $55.50. If this level breaks, it is very likely to see a further price decrease to the next support at $55.00. This way, we expect the price gradually to take over level after level until it reaches the lower level of the orange bearish channel.
In this relation, we have sufficient reason to believe that the Brent Crude Oil will soon reach the area around the $54.00 as an attempt to test the lower level of the orange channel as support.
MGM Resorts Int.
The first bigger mover we will discuss today is the hospitality giant MGM Resorts International. The MGM security was a loser from the yesterday’s trading session that depreciated with $2.74 per share. This drop caused the value of the MGM binary option to decrease with the remarkable 9.26%. The sink was a result of the bad Q4 earnings of the company.
The H4 chart of the MGM security shows us that the price has been following a slightly bearish channel (yellow) until the price has reached its 1-year green bullish trend line. In the red circle, you see that the price peeks through the trend line and one week later we see the yesterday’s collapse. As a result, the stock closed below the psychological support at $27.00 reaching more than a 3-month low.
Notice that the 20, 50, and 100-period SMAs were very mixed at the time of the yellow channel. This was another implication that the price might change its direction occasionally.
The other market mover we will discuss is the binary option of Coca-Cola Company. The KO security was among the gainers from the last trading session. Its price increased with $0.76 per share, which boosted the value of the security by 1.88%.
The H4 chart of the Coca-Cola binary option shows us that the security is demonstrating a ranging behavior. The stock has been bouncing between the levels of $40.00 and $42.00 during the last three months. The last time the stock approached the area around the $40.00 support we saw a bounce and the occurrence of the yesterday’s increase.
Afterward, the price action reached the $41.20 level as a resistance where it showed hesitation. As a result, Coca-Cola finished the trading day at the same level.