CX finds buyers again around 4.00
Cemex S.A.B. de C.V. Sponsored ADR (CX) Technical Analysis Report for Jul 15, 2019 | by Techniquant Editorial Team
CX ended Monday at 4.07 gaining $0.05 (1.24%), significantly outperforming the S&P 500 (0.02%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CX as at Jul 15, 2019):
Monday's trading range has been $0.10 (2.48%), that's slightly 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 above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CX. Prices continued to consolidate within a tight trading range between 3.98 and 4.12 where it has been caught now for the last three trading days.
Unable to break through the key technical resistance level at 4.08 (R1), the market closed below it after spiking up to 4.10 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 July 12th, CX actually gained 1.24% on the following trading day. After having been unable to move lower than 4.01 in the previous session, the share found buyers again around the same price level today at 4.00.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 4.12 where further buy stops might get activated. Selling could accelerate 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 speed up should Cemex S. A. B. break out to new lows for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Cemex S. A. B.. Out of 391 times, CX closed lower 50.13% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 56.01% with an average market move of -1.01%.