This Is Why You Should Wait For Confirmation…

Chicago Mercantile Exchange (CME)
is beginning to form a bearish tail. It is trading just below the Fib projection
level. CME is down 10 cents at 168.50.

Notice, not so drastic, but the 14-period RSI is showing a negative divergence.
Indeed, the stock is starting to to lose its steam.

Now, let’s look at the daily chart. CME has violated a rising trendline, and it
is now testing the bottom of a trading range. Obviously, we are waiting for a
breakdown.

A divergence alone cannot be a good enough reason to open a trade. Get multiple
confirmations.

Have a nice afternoon session!

T.Kamada