Trading APPL with a BUY Signal

By David Fielder on 09 November 2011 in Daily Analysis with No Comments

As Silvio Berlusconi promised to resign, Europe is beginning to breathe again. Politics have a played a large role in the European debt crisis. Greece was having a lot of trouble accepting the European aid package politically and it nearly caused a complete break-down in the government. The same stage was being set in Italy but yesterday, the controversial president; Silvio Berlusconi, promised to step down. No definitive date has been set as yet, but this news alone was enough to help the EUR/USD head back up over 1.3840.

The EUR is now trading near 1.3823 but for binary options traders looking for a forex pair to trade, we would not recommend the EUR/USD. The USD/JPY seems like a slightly better trade although because it is trading at 77, it is a bit far from a significant SELL signal. If you are feeling like taking a bigger risk level, the EUR/USD is a better option for an ABOVE options after a break of 1.3950. This level is very strong and will allow a big move after it is broken, assuming it actually breaks.

Apple stock (APPL) is even more interesting today as the stock is right below a very strong resistance. We usually like this stock as it heads up and breaks resistances. Historically, the stock is very technical in nature. It reacts to most of the common technical analysis patterns very well and as such offers great BUY and SELL signals. Binary options traders can use these signals to properly time entry into the market with ABOVE and BELOW options. These signals, however, will not help with deciding about TOUCH and RANGE options. They are only for ABOVE/BELOW options.

Other options can be used when no such signals exist or in the case of the need for hedging. So look for a break of 409.5. It then has enough room to go rise up to the 423 level.