CME still stuck within tight trading range
CME Group Inc. (CME) Technical Analysis Report for May 17, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CME finished Thursday at 160.70 edging higher $0.03 (0.02%) on low volume. Trading up to $0.93 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move past the prior day's trading range in a lackluster session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (CME as at May 17, 2018):
Thursday's trading range was $1.51 (0.94%), that's far below last trading month's daily average range of $3.04. Things look different on a weekly scale, where volatility is way below the markets average with the monthly volatility being slightly below average. Prices continued to consolidate within a tight trading range between 158.50 and 161.37 which it has been in now for the last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Despite a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle.
Prices are trading close to the key resistance level at 161.37. The share found buyers again today around 159.40 for the third trading day in a row after having found demand at 159.37 in the previous session and at 159.27 two days ago. After trading as low as 159.40 during the day, CME Group found support at the 20-day moving average at 159.84.
CME shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might speed up should prices move above the close-by swing high at 161.37 where further buy stops could get triggered.