Oil Binary Call Option – May 26th 2015.
• Commodity: Oil • Timeframe: H4 (Hourly Chart) • Binary Option Trading Recommendation: Seek binary call options on dips below 60.00 • Upside Potential: The upside potential for this binary call option is 255 pips to 62.55 • Downside Potential: The downside potential for this binary call option is 100 pips to 59.00.
Oil is stabilizing inside of its horizontal support level after a move to the downside took this commodity from its intra-day high of 60.91 which was reached on May 21st 2015 to its intra-day low of 59.10 which was recorded yesterday on May 25th 2015. The intra-day high from where the move lower emerged represents the fourth lower high this month and a descending resistance level connects the intra-day high of 62.56 from May 6th 2015, the intra-day high of 61.88 from May 13th 2015, the intra-day high of 61.69 from May 18th 2015 and its most recent intra-day high of 60.91 from May 21st 2015.
Volatility receded during the move to the downside, but a spike in volatility is expected as price action is trapped inside of a triangle formation. Sellers are anticipated to extend the corrective phase with a breakdown below its ascending support level, but any potential breakdown is not expected to materialize and result in a false breakdown. Today’s binary options trading system favors buyers which are expected to pressure Oil into a breakout above its descending resistance level from where an advance into its horizontal resistance level is likely.
Oil will face its first resistance level, after a successful breakout above its descending resistance level, at its intra-day high of 60.91 which was reached on May 21st 2015. This level represents the origin of its latest drift to the downside. A breakout above this level will take Oil to its intra-day high of 61.88 which was recorded on May 13th 2015 . This level marks the high from where price action reversed into its ascending support level. The final resistance level is located at its intra-day high of 62.56 which was reached on May 6th 2015 from where a double top formation may emerge.
The following economic data out of New Zealand already impacted Oil: Trade Balance for the month of April : • Expectations: A trade surplus of NZ$98 million was expected for the month of April • Previous Report’s data: A trade surplus of NZ$754 million was reported in the month of March • Released data: A trade surplus of NZ$123 million was reported for the month of April • Impact on Oil: The better-than-expected trade surplus out of New Zealand sufficed to apply upward pressure on this commodity which favors binary call options in Oil.
In addition the following economic report out of the United States is expected to impact Oil: New Home Sales for the month of April: • Expectations: A monthly increase of 5.0% is expected for April • Previous Report’s data: A monthly contraction of 11.4% was reported in March • Impact on Oil: The expected increase in new home sales is likely to pressure Oil to the upside; this favors binary call options in this commodity.