The Hang Seng shows one of the most clear, promising charts for June 2017. Binary options are the ideal tool to trade it. Here’s how.
What Will Happen To The Hang Seng In June 2017
The Hang Seng is currently showing an optimistic chart:
This is a daily chart. We have added three moving averages (50 days, 100 days, and 200 days), and the Relative Strength Index (RSI).
Let’s see how we can use this chart to invest in binary options.
Opportunity 1: The long-term uptrend
- Diagnosis: The market is in a clear, strong uptrend since December 2016. During this time, it moved upwards and sideways but avoided bigger drawbacks. The three moving averages confirm this prediction. The market is trading far above all three moving averages, and they are stacked from shortest to longest in the direction of the market – a strong bullish sign. The RSI confirms the trend but has enough room to the upper side to allow the market to rise.
- Prediction: The market will continue to rise. Unless significant unexpected events push the market down, there is much. Under normal conditions, we would expect the market to trade higher than today one month from now.
- Trade: To trade this prediction, you can invest in a long-term high option with an expiry near the end of the month. These options offer payouts of around 75 percent, which is a good profit for one month.
Opportunity 2: The faster sub-trend
- Diagnosis: Since mid-April, the uptrend has created a stronger, steeper sub-trend. This trend moves quicker than the main trend and offers additional possibilities. This trend becomes more clearly visible on a shorter period. We recommend a 1-hour or 4-hour chart.
- Prediction: The faster trend shows no sign of slowing down. The pattern that started to emerge in early May is likely to continue.
- Trade: The faster trend does not require a long-term option. Depending on your risk-tolerance, you can trade it with a high/low option, one touch option, or ladder option. Use an expiry of 1 to 4 hours or longer, and target the upwards swings.
Opportunity 3: The declining momentum
- Diagnosis: The steep uptrend is the result of a strong sense of direction. The range of each individual period, however, has significantly declined. Compared to mid-April, daily periods now move only half as far, on average.
- Prediction: It will take some time before the market can recover. Until then, days will likely feature a narrow trading range, lower momentum, and few but predictable changes of direction.
- Trade: You can take advantage of this prediction by trading closing gaps, which are likely to occur in this environment, with one touch options. You can also invest in trends, ladder options that predict that the market will not fall much, and by investing in high options at the right time. On short periods, stay away from one touch options, boundary options, and ladder options that predict significant price moves.
These are our best predictions. Of course, there are no guarantees. Perform your own analysis before you invest, and manage your money well.