CX misses to close above 50-day moving average
Cemex S.A.B. de C.V. Sponsored ADR (CX) Technical Analysis Report for Jul 02, 2019 | by Techniquant Editorial Team
CX finished Tuesday at 4.29 losing $0.03 (-0.69%) on low volume, underperforming the S&P 500 (0.29%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CX as at Jul 02, 2019):
Tuesday's trading range has been $0.10 (2.31%), that's slightly below the last trading month's daily average range of $0.12. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CX.
After moving higher in the prior session, the share closed lower but above the previous day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on June 14th, CX lost -1.68% on the following trading day.
Prices are trading close to the key technical support level at 4.21 (S1). After spiking up to 4.35 during the day, the market found resistance at the 50-day moving average at 4.34.
Although Cemex S. A. B. is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Further buying could move prices higher should the market test June's nearby high at 4.46.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Cemex S. A. B.. Out of 30 times, CX closed higher 53.33% 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 eight trading days, showing a win rate of 56.67% with an average market move of 0.54%.