u s shares highlights cme group 2 465472015

CME Group (CME) – Potential bullish reversal above 88.90

(Click to enlarge charts)

Key elements

• Recent price action has managed to find support at the lower boundary of the medium term ascending channel (in orange) in place since 11 July 2014 and 20-week Moving Average after a decline of 10% from its 20 March 2015 swing high at 100.50 (see weekly chart).
• Price action has formed a weekly bullish “Dragonfly Doji” candlestick pattern right at the lower boundary (support) of the ascending channel and 20-werk Moving Average which suggests that the a potential bullish reversal in price action is round the corner (see weekly chart).
• The upper boundary of the medium ascending channel stands at 104.40/105.50 which also confluences with a Fibonacci projection cluster (see weekly chart).
• The intermediate term Stochastic oscillator has flashed a bullish divergence signal at its oversold region (see daily chart).
• The support at 83.66/82.60 also coincides closely with the 200-day Moving Average (in purple) (see daily chart).

Key levels (1 to 3 months)

Pivot (key support): 88.90

Resistance: 100.50 & 104.40/105.50

Next support: 83.66/82.60

Conclusion

Current technical elements suggest a potential bullish reversal is round the corner. As long as the 88.90 monthly pivotal support holds, CME Group is likely to see a recovery to retest the 20 March 2015 swing high at 100.50 before targeting the 104.40/105.50 significant resistance zone.

On the other hand, failure to hold above 88.90 may damage the medium term bullish trend for a further slide towards the next support at 83.66/82.60

*Note that CME Group will announce its Q1 earnings result on 30 April 2015.

Disclaimer

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