CX closes below its opening price unable to hold early session gains
Cemex S.A.B. de C.V. Sponsored ADR (CX) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
CX ended the week -6.51% lower at 4.02 after losing $0.03 (-0.74%) today on high volume, notably underperforming the S&P 500 (0.46%). Trading $0.07 higher after the open, Cemex S. A. B. was unable to hold its gains as the bears took control ending the day below its opening price. 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 12, 2019):
Friday's trading range has been $0.11 (2.72%), that's slightly above the last trading month's daily average range of $0.11. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CX.
One bullish candlestick pattern matches today's price action, the Last Engulfing Bottom Pattern.
Prices are trading close to the key technical support level at 3.95 (S1). Unable to break through the key technical resistance level at 4.08 (R1), the market closed below it after spiking up to 4.12 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on Monday, CX lost -6.31% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 3.95 where further sell stops might get triggered. With prices trading close to this year's low at 3.94, downside momentum could accelerate should the stock 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 "Last Engulfing Bottom Pattern" stand out. Its common bullish interpretation has been confirmed for Cemex S. A. B.. Out of 72 times, CX closed higher 54.17% of the time on the next trading day after the market condition occurred.