Market News & Analysis
CME Group bullish breakout holding above 200-day MA
Kelvin Wong December 6, 2019 9:05 AM
Medium-term technical outlook on CME Group
click to enlarge charts
Key Levels (1 to 3 months)
Pivot (key support): 197.08
Resistances: 224.91 & 244.60/248.70
Next support: 161.40
Directional Bias (1 to 3 months)
Bullish bias above 197.08 key medium-term pivotal support for potential up move to retest the 224.91 current all-time high printed on 06 Sep 2019. A daily close above 224.91 reinforces the start of another impulsive up move sequence to target the next resistance zone at 244.60/248.70.
On the other hand, a break with a daily close below 197.08 invalidates the bearish tone for a corrective decline to towards the major support at 161.40.
- The 12% + decline from its 224.91 current all-time high has managed to stall at the 200-day acting as a support at around 197.08 that coincides with the former major swing high area of 19 Nov 2018.
- Yesterday’s price action has staged a bullish breakout above a medium-term descending trendline from 06 Sep 2019 high. In addition, the daily RSI oscillator has staged a parallel bullish breakout after it has traced out a higher low. These observations suggest a revival of medium-term upside momentum.
- The next medium-term resistance zone of 244.60/248.70 is defined by the upper boundary of a medium-term ascending channel from 22 Mar 2019 low and a Fibonacci expansion cluster.
- The ratio charts of CME against the market (S&P 500) and its sector (Financials) are advocating outperformance of CME.
- CME has a low beta value of 0.17 as measured against the S&P 500 has started to show positive elements, thus it can offer diversification benefits against current market risk such as U.S-China trade tension.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.