Libraryback to all articles
Daily Binary Options Analysis for January 9, 2017
The EUR/USD price reached its orange bearish trend line as a resistance and did a bearish bounce as we expected. The bounce happened near the $1.0650 resistance zone. As a result of the bounce the EUR/USD is currently approaching the psychological level at $1.0500 as a support.
On the H4 chart of the EUR/USD we notice that the sideway consolidation toward the orange bearish trend line resembles an Expanding Triangle. At the same time, the bounce from the bearish trend line is also a bounce from the upper level of the Expanding Triangle pattern. In this relation, we have a sufficient reason to believe that the price action will seek interaction with the lower level of its Expanding Triangle, which matches with the $1.0365 support near the 14-year low of the EUR/USD binary option.
The Oil prices did another return to their orange bullish trend line, which we have been observing during the past month. The commodity did not manage to create a new high on the chart, but instead reversed and got back to the trend line again.
Today we will approach the H4 chart of the Brent Crude Oil binary option in order to see the whole bullish trend line of the commodity. The tests on the trend are marked with the black arrows on the chart. The green circle shows the current location of the price action. Will the trend line hold again, or not?
We mentioned above that the Oil did not manage to create a new high on the chart. But this is exactly what happened after the last bigger top on the chart. Therefore, we assume that the price action might bounce from its trend line, creating another bullish impulse on the chart.
One of the bigger gainers from the Friday’s session during the last trading week was Ebay Incorporated. The Ebay binary option increased with $1.04 per share. This way the security expanded in value by 3.47%.
The H4 chart of Ebay shows that the price action has been increasing slightly recently. Notice that the gradual increase of the binary option has brought the price above the 20, 50, and 100-period Simple Moving Averages.
The increase came after the price reached the $27.50 level as a support. Since then, the price has been increasing in the shape of a Rising Wedge (or a Bullish Channel). The increase during the last trading session led to a price expansion above $30.50 level, which marks the last high of the price action. This supports the continuation of the price increase. On the other hand, the yellow pattern on the chart might appear to be a Rising Wedge pattern, which has a strong bearish potential. This way the price action might meet again its $27.50 support.
The other gainer from Friday, which falls in our focus today, is Facebook Incorporated. The increase of the FB binary option was for $2.74 per share, which made the stock appreciate by 2.27%.
The Facebook security has been a gainer in 4 consecutive trading sessions, and this could be seen clearly on the H4 chart of the FB binary option.
Notice that the recent price behavior of Facebook has a ranging character. The range continued to the orange bullish trend line you see in the lower right bottom of the chart. This is actually the all-time bullish trend line of the Facebook security.
Facebook has been bullish since its listing on the New York Stock Exchange. In this relation, we are not surprised that the stock bounced upwards after reaching its all-time bullish trend. Furthermore, the price action broke its pink 100-period SMA and the upper level of the green range yesterday. This might appear to be a very attractive long opportunity with the Facebook security.