Cemex has been battered from 11 to almost 1. The stock has been dropping because of poor fundamentals, declining earnings and some quarters where they reported negative earnings.Here’s how the stock looked when it broke down last February 2017.
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From a technical perspective, the stock formed a support a 1.6 which has been protecting the stock for more than two months now.
A resistance was evident at the 2.15 range as the stock failed to breakout from the 2.15 early 2019. Which would have been a quick sell for quick traders. The resistance at 2.15 was formed from the breakdown of the stock from October 2018.
Last January 18, something happened to Cemex where the stock broke out of not just the 2.15 resistance but also the 2.30 resistance. Because of this breakout the stock is now poised to attack the resistance at 2.80 – 3. If you are a quick trader, the condition for this breakout to continue is that the the new supports at 2.15/2.30 must hold. If the stock drops below this ranges then the breakout condition to 2.80 – 3 will not stand.
If you are a position trader, stay away from the stock first as it has not fully reversed and is still in a longer downward bias. A full reversal at this point will come from a breakout and its ability to stay above 3. That’s when you start coming in.
If you are a fundamental investor, stay away first as the numbers have not fully reflected a turn around in its business. The company still has declining earnings and still has not shown massive earnings to date that is super impressive. If you want exposure to the cement business, Eagle cement is still better.
Here’s some video snippets on the fundamentals of Cemex: