vlad.adrian
Long

CME - Double bottom at buy zone

NASDAQ:CME   CME GROUP INC
234 20 1
***After posting the chart, for some reason I don't know, probably a technical error, the hammer became a piercing line pattern. So no hammer, but piercing line***

First of all, I need to say that the trade has no confirmation yet, but it's starting to look bullish .

As you can see, CME             rallied to 85$ and formed a double top. Target was at 72$, and respected it, without a big fight, closing below the first strong support zone at 78$ with ease.

Now, it's looking like a double bottom at a good daily support area, close to a very very strong weekly support, and a psychological level. There is a hammer at the current level, but I always wait for confirmation. Looking at the histogram, we can see a nice bullish divergence forming, bulls being much weeker now than a few weeks ago. Looking at the MACD lines, we have a class B bullish divergence. As I wrote in the chart, histogram is going flat, not higher, so neither divergence is confirmed yet, they are still forming.

So, we don't have candle confirmation and no divergence confirmation, so it's good to be patient. As long as we stay on top of the weekly support area, I'm looking to buy.
kitefrog
2 years ago
Your ex-resistance level, AKA the 'classic' long support level at $70.49, had a bullish RSIDIV dead on it's first touch to confirm it's a now good support. Looks OK for a long.
Reply
vlad.adrian PRO kitefrog
2 years ago
can you please make a snapshot of ur chart and post it here? I don't know what you mean, I don't really use the RSI
Reply
kitefrog vlad.adrian
2 years ago
<http://i.imgur.com/JoFEmMt.png> SEE the green.. lower low of price, vs higher highs of RSI
Reply
kitefrog kitefrog
2 years ago
http : forwardslash i.imgur.com forwardslash JoFEmMt . png (you have to fix my u R$L because the stupid site and an algo to remove them )
Reply
vlad.adrian PRO kitefrog
2 years ago
I can't see the picture. Just make the chart here on tradingview and take a snapshot. Look here to see how
snapshot

I made an arrow to show u where the snapshot button is. Just press it, and then copy the link here
Reply
vlad.adrian PRO vlad.adrian
2 years ago
It's placed right where the arrow is, and it is a green photocamera, it is the first out of the four buttons
Reply
sublimares2
2 years ago
Nice chart yet I doubt of the bullish divergence noted on the chart. It is already below MA200 and price going further under 70.5 might stop somewhere around 63 if no gap down is involved. I would consider this one short term bullish. I just noticed something is wrong with displaying of MA200 comparing with other platforms.
Reply
vlad.adrian PRO sublimares2
2 years ago
Ur right, as I said, the divergence isn't confirmed yet. As for long term moving averages, I don't really use them. This ideea is only for the short term
Reply
sublimares2 vlad.adrian
2 years ago
There is no bullish divergence and no reason to believe in a confirmation as long as something is not existing. MA is a good tool for finding many things from a technical perspective - very useful and very telling. I dare to think into a continuation pattern formation like symmetrical triangle and taken the pivot low of the last corrective wave- it will give a good target on the downside. Good charting Vlad
Reply
vlad.adrian PRO sublimares2
2 years ago
Hello, can you please give more details about how you use long term moving avereges??
Regarding the divergence, today it has been confirmed, histogram going higher. For some reason, after posting the chart, the hammer became a piercing line, don't know high but I'm 99% sure that it was a hammer when I drew the chart. Confirmation for the piercing line too, with a good day up
Reply
sublimares2 vlad.adrian
2 years ago
No reason to speculate over the mysterious candlestick change of appearance. I noticed the same over and over again- luckily, I took a copy of a chart made in a weekend and by Monday the appearance of the candlestick formation was different. I do not count on the candlestick formation pattern - not much reliability. The same goes for the gaps on the daily chart. Moving averages on different chart frame is useful to see the whole trend direction, support and resistances. I added a chart of CME and also some MAs and an EMA. It can be useful also other values for MA /EMA. I can see there were like 3 attempts to cross above MA50 and failed. The price is also below MA200 and is a question if there is enough demand to put this stock into an uptrend again. The uptrend line is broken, MA50 is falling while MA200 is rising - close to a crossover?. Price is resting (support) at EMA250 but is it strong enough? MA50 is likely to play the reversal level. There are more resistances than supports at this level.
snapshot
Reply
vlad.adrian PRO sublimares2
2 years ago
I see what you mean... I tried finding a strategy using moving averages and I couldn't find one that makes money, because of choppy markets. Please don't understand that I'm insulting your strategy, maybe it is a very good one. Your strategy is more trendbased, my suggestion was a swing trade. You can't compare these two trading aproaches. I don't know if CME will start a new uptrend, I just saw a double bottom and saw a long opportunity, only for a few days. Using long period MA like you do will give you longer term trades, so on the long term you might be right, Cme will fall.
Reply
sublimares2 vlad.adrian
2 years ago
You asked how I use (and most are using in the same way as I do) moving averages. I am not sure I understand the part of a strategy based solely on MAs when your question is addressing a general view on MAs. Oh, well- the garden is big:)). Question: is CME in an uptrend or downtrend? And as for the strategy analyses: I do not even bother to comment it. If the swing shows a probably gain on the long side of $3 and the probability of going lower- (making lower lows) short $10 would you take the risk going long for $3 on a $70 stock?
" I don't know if CME will start a new uptrend, I just saw a double bottom and saw a long opportunity, only for a few days.Using long period MA like you do will give you longer term trades, so on the long term you might be right, Cme will fall." I think we are wasting our time.
Reply
vlad.adrian PRO sublimares2
2 years ago
I take your comment as an insult and yes, we are wasting your time. If you can't help others kindly, then don't do it. Take your moving averages and make a fortune for yourself (so I won't use another saying that sounds similar but the ending is different ;) )
Reply
sublimares2 vlad.adrian
2 years ago
No insult intended- cannot help how people perceive comments. Why would I use my time communicating with you and drawing a chart. Communication closed.
Reply
vlad.adrian PRO sublimares2
2 years ago
"the garden is big" , "I do not even bother to comment it" , "I thing we are wasting our time" - If you don't mean to insult, I suggest you get rid of this way of talking to others, especially when all of us are here to learn! Have a nice day!
Reply
07.03.2014 First target of the double bottom formation (previous high) has been reached.
Reply
sublimares2
2 years ago
Too many coincidences then it's not a coincidence- nice copy-paste

http://www.4-traders.com/CME-GROUP-INC-3782767/technical_analysis-full/
Reply
vlad.adrian PRO sublimares2
2 years ago
You are sick! If you would have bothered to look at my charts you would see it is the same type of analysis, IDIOT!
Reply
sublimares2 vlad.adrian
2 years ago
Still valid what I posted above. Since I know your league so well I had to marque the self-victimization role that you are playing. You run with the first prize on insulting. Thank you for the laugh.
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out