One financial market player that's starting to move within range of triggering a major breakout trade is CME Group (CME), which offers products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. This stock has been in play with the bulls so far in 2013, with shares up sharply by 48%.
If you take a look at the chart for CME Group, you'll notice that this stock recently formed a triple bottom chart pattern at $70.42, to $69.88 and $70.28 a share. Following that bottom, shares of CME have now started to trend back above its 50-day moving average of $72.70 a share. That move is quickly pushing CME within range of triggering a major breakout trade.Traders should now look for long-biased trades in CME if it manages to break out above some near-term overhead resistance levels at $75.50 to $77.65 a share and then once it clears its 52-week high at $79.45 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1.84 million shares. If that breakout hits soon, then CME will set up to enter new 52-week-high territory above $79.45, which is bullish technical price action. Some possible upside targets off that breakout are $90 to $100 a share. Traders can look to buy CME off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $72.70 a share or just below more support at $70 a share. One can also buy CME off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
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