CX ends the day on a bullish note closing near the high of the day
Cemex S.A.B. de C.V. Sponsored ADR (CX) Technical Analysis Report for Jul 11, 2019 | by Techniquant Editorial Team
CX ended Thursday at 4.05 gaining $0.07 (1.76%) on high volume, notably outperforming the S&P 500 (0.23%). Trading up to $0.04 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. 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 Jul 11, 2019):
Thursday's trading range has been $0.08 (1.99%), that's below the last trading month's daily average range of $0.11. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CX.
Prices are trading close to the key technical resistance level at 4.08 (R1). After having been unable to move above 4.05 in the prior session, Cemex S. A. B. ran into sellers again around the same price level today, missing to move higher than 4.06. The last time this happened on June 11th, CX lost -2.12% 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 could now be heading back up towards the mean of the Bollinger Bands at 4.17.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 3.95 where further sell stops could get activated. With prices trading close to this year's low at 3.94, downside momentum might accelerate should the market break out to new lows for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Cemex S. A. B.. Out of 725 times, CX closed higher 50.90% 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 three trading days, showing a win rate of 52.69% with an average market move of 0.20%.