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CME Group said that the best risk management is about being ready for what is unexpected, not just what is visible.
The company referenced energy markets this year, noting supply chain disruptions, unexpected moves in the Strait of Hormuz and sharp swings in oil prices. CME Group said weekly options are a response to these challenges.
CME Group ($224.29) is trading well below key moving averages: MA-20 ($247.56), MA-50 ($271.09), and MA-200 ($280.48), signaling persistent downward pressure across short-, medium-, and long-term horizons. The Ichimoku Kijun on D1 stands at $255.65, which is above the current price and serves as immediate resistance; MA-20 and MA-50 also act as near-term and key resistance levels, while MA-5 ($223.42) and MA-100 ($288.64) define near-term and key support boundaries within actionable reach.
Momentum indicators on D1 remain negative, with MACD firmly in sell territory (-$19.07) and ADX elevated at 38.84, confirming a strong prevailing trend. D1 oscillators highlight an oversold setup: RSI is deep at 23.93, Stoch RSI at 10.62, and CCI at -148.03, while BBP at -13.31 signals pronounced seller dominance. The Awesome Oscillator also supports the downward move, and these collectively suggest continued bearishness, though oversold conditions increase rebound risks. CME is trading at $224.29, up from last week's close of $221.00, reflecting a 1.99% gain, with the price settling in the middle of its weekly range. Weekly volatility stands at 5.96%. This week’s tone is one of mild recovery from the recent low, offsetting the general downward momentum.
For the coming week, the expected price range is adjusted to $215.00–$230.00, reflecting both the strong downtrend and the typical weekly volatility, and keeping CME comfortably above its 52-week low ($218.31) but far below its year high ($329.16). Based on W1 signals—where all key indicators (RSI, ADX, MACD, MA-50) remain in sell or neutral stances—the probability of a further price decline is very high (more than 80%), while upside prospects are limited. The baseline scenario calls for CME to move sideways between $215 and $230 as bears and bargain hunters balance out. A bullish scenario would require a close above the $247.56–$255.65 resistance cluster (MA-20 and Ichimoku Kijun), opening the way for short-term retracement, though this is unlikely given current signals. A bearish scenario envisions sellers overwhelming, pushing the price below $215 and potentially testing the 52-week low, especially if momentum accelerates.
Earlier, analysts noted that CME Group was experiencing persistent bearish momentum with limited prospects for an immediate rebound. This article adds a new dimension by evaluating recent developments in trading activity, underscoring that traders should closely monitor for any sustained change in momentum that could signal a shift in the prevailing downtrend.