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Daily Binary Options Analysis for January 5, 2017
The EUR/USD binary option price is located between a support and a resistance zone. The support zone is located between $1.0339 and $1.0365. The resistance area takes place around the psychological $1.0500 level.
On the H4 chart of the EUR/USD you will see that the price frequently goes above the $1.0500 resistance. However, on the D1 chart you are able to see that the $1.0500 level was an ex-support, which is currently turning into a resistance.
This is why we believe the EUR/USD binary option is in some kind of a range. To confirm a bearish breakout of the range, we will need the price to go below its last 14-year low at $1.0339. To confirm a bullish breakout, we will need a daily candle to close above $1.0500. If one of these two happens, we will attain a better picture about which way the EUR/USD binary option might take.
After decreasing again to their orange bullish trend line, the Crude Oil binary options bounced in bullish direction. This made us think that the price action is undertaking another bullish impulse. However, the price run found resistance pressure right in the beginning of the potential impulse.
This is the hourly chart of the Brent Crude Oil. The two black circles show us the support pressure on the orange bullish trend, as well as on the $55.50 zone. The three black arrows point to the resistance the price is currently finding in the $56.60 level and at the same time in the red 50-period Simple Moving Average.
For now it looks like the price will be unable to break the resistance area before making another interaction with the orange bullish trend. Therefore, it looks like a reasonable act to look for a decrease to the orange trend. On the other hand, if the price breaks the $56.60 resistance and the red 50-period SMA, then we will probably see a breakout through the pink 100-period SMA, which is likely to bring the price to the next psychological resistance at $57.50.
General Motors Co.
The automobile sector is in our focus again with its relative gains. The first firm we will discuss is General Motors Company. The GM stock increased with $1.94 per share, which made the stock jump by 5.52%.
Above you see the H4 chart of the GM binary option. We were looking at the same chart yesterday. We were discussing that the stock is meeting the already broken orange bearish trend as a support. The black arrow points to the moment of support test. Notice that there is a Doji candle on the tip of the black arrow. This was another indication that the stock might increase.
Then the yesterday’s trading session started with a bullish gap through the blue 20 and the red 50-period SMAs followed by a further price increase through the psychological resistance at $36.50. In this case we believe that the stock might approach the zone around its last top at $37.60. If the price breaks this resistance, we will be getting a 20-month high on the General Motors chart.
Ford Motor Co.
The other automobile company we will discuss is Ford Motor Company, which was also a gainer from the last trading session. The Ford binary option added $0.58 to its stock price, which increased the value of the asset by 4.61%.
The H4 chart of the Ford security shows that the bounce came after the price interacted with the psychological pink 100-period Simple Moving Average. The followed increase sent the price above the blue 20 and the red 50-peridod Simple Moving Average as well as the $12.50 resistance.
During the yesterday’s trading session the increase went through the psychological $13.00 level. Here the bullish price run went above the orange bearish trend line. The increase even went above the last price top at $13.17, which created a new 5-month top.
We cannot say that the $13.17 top is already broken. Since the price is still located in this area, we will need a further action in order to confirm the breakout.