CME pushes through Wednesday's high
CME Group Inc. (CME) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CME finished Thursday at 174.84 gaining $18.51 (11.84%), strongly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 160.59, the market confirmed its breakout through the previous session high after trading up to $16.39 above it intraday.
Daily Candlestick Chart (CME as at Mar 26, 2020):
Thursday's trading range has been $19.77 (12.51%), that's above the last trading month's daily average range of $15.19. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for CME.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 163.87 (now S1), which is likely to act as support going forward. The last time this happened on Tuesday, CME gained 2.67% on the following trading day.
Though CME Group is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for CME Group. Out of 307 times, CME closed higher 59.93% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.33% with an average market move of 0.68%.