Chart of the Week: Chicago Mercantile Exchange
It’s time for our chart of the week, and this week we’re gonna be focused in on the CME, the Chicago Mercantile Exchange. The chart’s looking pretty good. Let’s take a look at it going forward here.
So here we have the stock having made a move all the way down to this 50 day moving average. Seems to be where the CME catches a lot of support. Look back at April, back even in January, caught support at the 50 day moving average. Rose up nicely here. And you can see huge move down to the 50 day moving average that stopped the drop back in early May. Same thing happened. We had a huge drop off of the all time highs to the 50 day moving average.
And then more recently in June, we had a big drop – six, seven days in a row. Heavy selling. Heavy selling right down just below the 50 day moving average. And now it’s sort of making a move right above the 50 day moving average here and it’s trying to get above there right now.
So does it look really bullish? No, it’s not real bullish right now. But certainly this money flow has been very, very strong. We also have the MACD still on a buy signal over here. You can see the crossover here; this is some big volume that we had here back in June and in late May has been digested and the stock is now up above where those levels were at where a lot of the selling was going on.
So does it mean it’s going to be a big huge breakout here? I don’t know, but I’ll tell you what. I would bet my money on this one right here. I think it’s going to make a move back up to $300; the old high is about $290. $300 would be about a 10% move for CME right here and I think that that in and of itself would be a great move.
We also see good movements in the relative strength as well with higher highs and higher lows. It’s not overbought here right now; obviously after this drop back in June. But it’s recovered a lot of that move. And once we get above this $280 level, which had printed in the early part of July, I think the stock’s got room to go. I think $300, $310 – maybe, perhaps – on the next move up is going to be the target.
So that’s the CME. Thanks so much for watching everyone and I’ll see you guys next time.
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