Stock of the day: CME Group

CME has been following a consistent down-trend since February 2022. Initially, there was a sharp drop, followed by a corrective phase in a shape of a triangle formation (highlighted in red on the left side of the chart). Subsequently, another decline occurred, followed by a correction in a form of a flag pattern (highlighted in red on the right side of the chart). In April, the flag pattern reached a local peak when the price touched the upper line of the flag, the long-term down-trend line (blue); and encountered horizontal resistance at $195.

Since then, the price has predominantly been trending lower. Yesterday, sellers successfully breached the lower line of the flag formation, and thereby concluding this pattern and, theoretically, initiating a new bearish wave. This serves as a sell signal which was mentioned in the outset of this analysis. The bearish sentiment is expected to persist as long as the price remains below the blue trendline.