The security looks ripe for a round of downgrades and/or price-target cuts
CME Group Inc (NASDAQ:CME) is up 1% to trade at $177.25 at last check. A floor at the $174 level has been supporting shares over the past week, but overhead pressure at the $180 area has been capping any positive price action since September. Shares might soon be testing that floor, though, and could add to their 23.7% year-over-year deficit as they come within striking distance of a trendline with historically bearish implications.
More specifically,
CME Group stock just neared its 100-day moving average.
According to Schaeffer's Senior Quantitative Analyst Rocky White's most recent study, the security saw five similar signals in the past three years, and was lower one month later 80% of the time, averaging a 2.2% decline. A comparable move from its current perch would place shares at $173.36.
Additional headwinds could stem from a shift in analyst sentiment, given seven of the 13 in coverage still carry a "strong buy" rating on CME. In addition, the 12-month consensus target price of $200.82 is a 13.2% premium to current levels, leaving the door wide open for price-target cuts.