US Technical Analysis Report

One NASDAQ-Listed Stock Gaining Upside Momentum as Russell 3000 Consolidating its Gains – CME

10 November 2023

Investment Type
Risk Level
Rec. Price (AU$)

Company Overview: CME Group Inc. (NASDAQ: CME) is a leading global derivatives marketplace that offers a wide range of products across all asset classes, including interest rates, equity indexes, foreign exchange, agricultural commodities, energy, and metals. This Report covers the Price Action, Technical Indicators Analysis along with the Target Levels, Stop Loss, Support Levels, Resistance Levels, and Recommendation on stock.

US Markets Round-Up

This week, the Russell 3000 index, an important benchmark of the US stock market across market capitalizations, remained range-bound throughout the week, consolidating its gains from the previous week. The index made high of 2507.415 during the week and settled at 2478.422 with a week-to-date (WTD) loss of ~0.595 percent on November 9, 2023Other major indices, such as S&P 500 and NASDAQ Composite witnessed upside movement for the week. On November 9, 2023, the S&P 500 index settled at ~4347.36 with a WTD loss of ~0.25 percent, while the NASDAQ Composite Index settled at 13521.448 with a WTD gain of ~0.32 percent. 

Having understood the US market performance over the week, taking cues from major global news, and based on technical analysis of the Russell 3000 index for the upcoming week, now let’s have a look at the one NASDAQ-listed stock to pick from the technical standpoint. Noted below recommendation are based on the entry price, target prices, and stop-loss for CME Group Inc. (NASDAQ: CME) for the next 2-4 weeks duration: 

CME Group Inc. (NASDAQ: CME)

Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart)

The stock price rebounded sharply from the trendline on heavy volume. Additionally, the stock price broke out of a long-term downward trendline and retested the breakout level before drifting higher, suggesting further upside momentum in the near term. Now, the next major resistance level for the stock appears at USD 239, and prices may test this level in the short term (2-4 weeks). A further movement above USD 239 may extend buying in the stock.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, the leading indicator RSI (14-period) is in the positive territory and showing a reading of 64.31, indicating a positive bias. The volumes also seem supportive of the next upside movement. Moreover, the prices are trading above the trend-following indicators 21-period SMA and 50-period SMA, which may act as dynamic support level.

General Recommendation

As per the above-mentioned price action and technical indicators analysis, CME Group Inc. is looking technically well-placed on the chart, and a ‘Buy’ recommendation has been given on the stock. Investment decision should be made depending on an individual’s appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report. The summary of recommendation is as follows:

Upcoming Major Global Economic Events

Market events occur on a day-to-day basis depending on the frequency of the data and generally include an update on CPI, PPI, employment etc. Noted below are the upcoming week's major global economic events that could impact the Russell 3000 Index and stocks’ prices:

Related Risks: This report may be looked at from a high-risk perspective and recommendations are provided for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

Note 1: Individuals can consider exiting from the stock if the Target Price or Stop loss mentioned as per the technical analysis has been achieved and subject to the factors discussed above.

Note 2: How to Read the Charts?

The Green colour line reflects the 21-period moving average while the red line indicates the 50- period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Risk Reward Ratio: Risk reward ratio is the difference between an entry point to a stop loss and profit level. This report is based on ~60% Stop Loss of the Target 1 from the entry point.

A trailing stop-loss is a modification of stop-loss in case of favourable movement in the price to protect the gains. Individuals can Trail the Stop-Loss as per the aforementioned levels if the stock price achieves more than 50% of the Target 1. Individuals should consider exiting from the position as per the Trailing Stop-Loss level if the price starts moving downwards after achieving more than 50% of the Target 1.

The reference date for all price data, currency, technical indicators, support, and resistance levels is November 9, 2023. The reference data in this report has been partly sourced from REFINITIV.


CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar

Note: Trading decisions require a thorough analysis by individuals. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.


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