Beautiful Arc Trading Opportunity for CME
CME Group (CME) is forming an ‘Arc Trendline’ pattern that is among my favorite patterns to trade.
Let’s view the arc, note the levels, and highlight profit opportunities from future movement:
Imagine these curved or arc trendlines as you would regular trendlines where price tends to trade down from resistance and up off support.
However, the curve or parabolic nature tends to reach a climax or peak on a breakout through the steeply lower rising trendline.
Trade WITHIN the trendlines – using caution – as long as price does continue to bounce between these levels.
However, look to take profits or consider short-selling a breakdown – and possible reversal – through the lower trendline.
You can visualize a smaller arc trendline pattern on the chart by viewing the July to November 2013 period and the pullback that took price from the $84.00 level down to $67 in the following months.
Here’s another view of the parabolic arc trendline pattern:
Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).
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