Chart of the Week: CME
Hey everyone. Good morning, good afternoon, happy Wednesday. It’s time for our chart of the week. And this we’re gonna be focused in on an old friend of ours, which we’ve profiled before. It’s called the CME group, or the symbol is CME.
So let’s take a look at this chart. It’s come back down a little bit and maybe ready for a buy here. Let’s take a look at the chart.
So after looking like it’s almost hit a double top over here – and you can see that bearish formation forming right here and right there, maybe triple top – whatever – the stock fell sharply in August and followed through to the downside. And fell through this 50 day moving average and all the way down to this 200 day moving average. So it’s touched down at some good support here.
The stock is oversold. We can see the MACD is pretty well oversold here. Chaikin money flow is oversold but it’s trying to turn positive again.
But on-balance volume hasn’t come down too much here. So it just tells you that big institutions are still holding the stock, not selling it, which is what we like to see.
This trend clearly is down. We’re in a downtrend over here. Definition of a downtrend: lower highs, lower lows. But again, stopping here at this 200 day moving average here and rallying back up – if we can get a series of higher highs, higher lows, we can get another trend channel created here, which could possibly be higher highs and higher lows. I’m speculating over here of course, but that would put us in position for what we call a bullish V-bottom. We can see the V shape right over there.
So we’ll see what happens. And again, this is what we saw happen in early summer, back in June. We also saw that happen back in the spring when the markets fell early in April. Bounced right back again.
This is a high-quality company. It’s one of the strongest names in markets and in trading. The CME exchange owns a lot of commodity businesses for trading.
I think CME would be a great pick-up here, especially being about 10% off the highs recently printed in the early part of summer.
So that’s the CME. Thanks so much for watching everyone, and I’ll see you guys next time.
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