Don't Ignore This Chart!

CME Group Consolidating in Bullish Ascending Triangle


The recent movement in CME shares back and forth is nothing but noise.  The technical picture here is very solid with an uptrend in place that began in early 2013, preceding the current ascending triangle formation.  During that span, CME more than doubled its stock price although its March high was still approximately 10% below its all-time high set back in late 2007.  While we're likely to see continuing consolidation in the near-term on CME, a high volume breakout of this triangle pattern would measure to the 110-112 range, which would challenge its all-time high.  CME ran into momentum issues back in March as a negative divergence printed on its MACD just as 2015 highs were reached.  CME was also overbought at the time so the consolidation since March has helped the stock on a number of levels.  Check out the chart:

Happy trading!


Tom Bowley
About the author: is the Chief Market Strategist at, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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