One of the most attractive stock indices to trade in the binary options markets nowadays is the tech-heavy NASDAQ Composite. The past trading week showed another opportunity to start buying call options for the index on Wednesday. The technical signal occurred after the daily candlestick had a long downside shadow, testing the 21-days exponential moving average, which acted as the support curve since the bullish breakout on April 6th. A similar pattern happened two times before that and every example showed an upside rally afterward. Chaikin Oscillator improved the accumulation bias, while Chaikin Money Flow Index soared, underlining the additional demand for call options among traders.
An essential target for the binary options traders is to lift the NASDAQ Index above the all-time peak noted in February 2020 if they are interested to proceed with the uptrend. A failed test of the top value could lead to a double-top reversal bearish formation, promising another wave of the sell-off. Therefore, it is recommended to limit trading cycles at around 9700.00 points.
Brent Oil: Call
The price of Brent oil contract kept rising this past week as the call-option buyers were reacting to positive changes around the globe, especially in terms of OPEC Plus negotiations and rumors about improving demand for the black gold. As a result, Brent added almost +7% to its price, closing the past week at the highest level since the sell-off started. The level of $37.80 per barrel might be a compromise for several key exporters in the near-term perspective. On the other hand, the technical analysis points to a key target of $45.51 per barrel, the upper band of the huge gap occurred on May 7th. Until the gap is filled, there is a chance for the price of oil to get back to the bearish market again.
Bollinger Bands and Aroon envelope indicators show that the price of oil is reaching the daily resistance, although the sentiment is clearly bullish. So there is a chance for a sideways consolidation in the week ahead until further negotiations cleared the path. Binary options traders could consider buying call options for the Oil contracts but be ready to reverse at any moment as the market conditions might change rapidly.