FxWirePro: WTI bears pop up at channel resistance, break-out above pivot point to add stimulus to consolidation phase – Double touch binaries to speculate

The bearish swings are popped up exactly at channel resistance in the consolidation phase.

Stiff resistance is seen at around 49.09 levels. You could very well observe, historically, it has shown the weakness at the same juncture and evidence more slumps.

The breakout above this level would attract more upside traction $51.50 levels, otherwise, the failure swings would generate more price dips.

On a broader perspective, the major trend has been bearish. WTI crude price has been tumbling from the last couple of months but for now, it has taken strong support at 42.09 levels in the recent past (refer monthly chart) but the rallies on this time frame are struggling for the momentum in price spikes.

Well, the current prices are well above DMAs (on the daily chart) and well below EMAs (on monthly chart).

RSI evidences the upward convergence to the price rallies. While stochastic curves have been indecisive in the overbought territory.

MACD on both time frames signals upswings to extend further.

Hence, we don’t encourage long-term short build ups for now; instead, we advocate speculative trade strategy as stated below.

Trade tips:

Contemplating above technical reasoning, at spot reference: 48.54, use double no touch binary options with two strikes – upper strikes at 49.20 levels and lower strikes at 48.02.

With the double no-touch binary options trade, the binary options trader selects a set of strike prices above and below the current market price as well as an expiration time. The broker will offer him a payout percentage corresponding to his selection.

The payoff structure is dependent on the price of the underlying spot price that should not hit either one of the strike prices once before the option expires.