NEW YORK (TheStreet) -- Chicago Mercantile Exchange (CME) was in full breakout mode on Wednesday. The stock gained over 2.35% with the help of a healthy jump in volume. CME finished the session well above its May high of $96.50 and within easy striking distance of the 52-week high of $100.61 set in March.
Shares are set up well for a run back up to March highs, but a consolidation may be needed before the $101 area is clearly taken out.
Following Wednesday's ramp, CME left behind a very solid layer of support. The $96.50 area held the May top as well as last week's high while the stock consolidated after the late April breakout.
This level is now a low-risk buy zone during a pullback. Considering the extent of the upside momentum during three of the last four sessions, CME may not need a pullback until after the 52-week highs are tested.
If CME is in need of a rest in the very near term, it is a buy on weakness. The stock has had a nice 11% move off the late April lows but remains well below an overbought moving average convergence/divergence reading. With a continued jump in interest rates, investors could potentially drive CME sharply higher. At some point in the not to distant future, the $100 area could develop into a major support zone.Click here to see the below chart in a new window.