CME rockets, gaining $3.08 (1.89%) within a single day
CME Group Inc. (CME) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
CME ended the month 2.24% higher at 166.18 after surging $3.08 (1.89%) today, strongly outperforming the S&P 500 (0.77%). This is the biggest single-day gain in over two weeks. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 164.33, the stock confirmed its breakout through the prior session high after trading up to $1.98 above it intraday.
Daily Candlestick Chart (CME as at Jul 31, 2020):
Friday's trading range has been $3.08 (1.88%), that's slightly below the last trading month's daily average range of $3.11. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower 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 164.03 (now S1), which is likely to act as support going forward. The last time this happened on July 1st, CME actually lost -2.15% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 166.74.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Further selling could move prices lower should the market test June's close-by low at 161.11.
Among the nine 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 309 times, CME closed higher 59.22% 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 57.28% with an average market move of 0.77%.