$11-$12 Range Breakout Will Be Trend Decider For Cemex SAB de CV (ADR) (NYSE: CX)

Denver, CO, 07/26/2013 (Avauncer.com)  –  Cemex SAB de CV (ADR) (NYSE: CX) (Closed: $11.61, Up: 2.20%) ended the last session on a positive note with volume at 18.5 million, a bit higher than the average of 14.5 million but the structure remains a bit of concern for the bulls. The July part of the rally is looking like a Rising Wedge more and more and unless the price manages to breach and sustain above $11.90 - $12 in the next few sessions, the stock runs the risk of weakening. The high of the day at $11.80 was made exactly on the upper trendline of the wedge.

The stock had a steep fall in the bear market of 2007 – 2008, when it lost over 90% of its value to reach $4 from $41. After a bounce to $14.58 in 2009, the stock dropped to $2.27 by October 2011 to make a new low. From that bottom the price managed to rise to the old supply zone of $12.60 - $12.70 so far and corrected from there. This rally from the 2011 bottom contains two corrections of very similar degree, which implies that the last major swing low holding, another high remains on the cards before any major fall.

The first correction was from the February 2012 top of $8.67 to the June 2012 bottom of $4.94, or of 3.73 points. The second one was from the April 2013 top of $12.71 to the June 2013 low of $9.13, or of 3.58 points. The low of the second correction has not touched the February 2012 top. All this signifies that the bulls can still get a new high above $12.71 if they can protect $9.13 or at worst, $8.67.

In the short term, if price breaks below $11.18 -$11.28, then a fall to $10.17 - $10.34 or even lower is possible. Holding that, bulls may take the price higher with the supporting indicators.