Technical Insights for CME GROUP INC (NASDAQ:CME): Is a Breakout Imminent?

A possible breakout setup was detected on CME GROUP INC (NASDAQ:CME) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:CME.

In-Depth Technical Analysis of NASDAQ:CME

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Overall CME gets a technical rating of 7 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, CME is only an average performer.

• The long and short term trends are both positive. This is looking good!
• CME is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month CME has a been trading in the 213.94 - 230.74 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.
• When compared to the yearly performance of all other stocks, CME outperforms 48% of them, which is more or less in line with the market.
• CME is an average performer in the Capital Markets industry, it outperforms 51% of 220 stocks in the same industry.

For an up to date full technical analysis you can check the technical report of CME

How does the Setup look for NASDAQ:CME

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:CME currently holds a 10 as its setup rating, suggesting a particular level of consolidation in the stock.

CME has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 229.38. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 227.33, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for CME in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NASDAQ:CME be traded?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Of course, there are many ways to trade or not trade NASDAQ:CME and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.