Candlesticks - Bearish Engulfing CME Group

Published on Wednesday, 18 January 2012 04:36 Written by Christopher Lynn

New York, January 18th (TradersHuddle.com) - Shares of CME Group Inc. (NASDAQ:CME) ended the trading session lower by $5.35 or -2.28% from its previous close. CME's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

CME Group Inc. (NASDAQ:CME) operates a derivatives exchange that trades futures contracts and options on futures, interest rates, stock indexes, foreign exchange and commodities. The Exchange brings together buyers and sellers of derivatives products on its trading floors, electronic trading platform, and through privately negotiated transactions that it clears.

CME's current stock range is defined by calculated support defined at $224.69 and by the resistance level at $259.75, which should be used by traders planning their trades.

Traders wanting to establish a position in CME Group stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current CME Group shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: