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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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CME Group bullish breakout holding above 200 day MA

Article By: ,  Financial Analyst
December 6, 2019 4:05 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.

Key elements

  • 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.
Charts are from eSignal 



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