CX closes higher for the 3rd day in a row
Cemex S.A.B. de C.V. Sponsored ADR (CX) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CX ended Tuesday at 4.87 gaining $0.07 (1.46%), notably outperforming the S&P 500 (0.05%). The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (CX as at Apr 16, 2019):
Tuesday's trading range has been $0.09 (1.88%), that's far below the last trading month's daily average range of $0.16. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for CX.
Notwithstanding a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Cemex S. A. B. managed to close back above the 50-day moving average at 4.85 for the first time since April 10th. When this moving average was crossed above the last time on April 5th, CX gained 2.62% on the following trading day. Prices are trading close to the key technical resistance level at 4.94 (R1). After having been unable to move above 4.87 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 4.87.
Although the stock 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 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Cemex S. A. B.. Out of 61 times, CX closed higher 63.93% 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 nine trading days, showing a win rate of 62.30% with an average market move of 0.55%.