Live Cattle Technical Analysis – Live Cattle Trading: 2021-12-09

 Live Cattle Technical Analysis – Live Cattle Trading: 2021-12-09

Live Cattle Technical Analysis – Live Cattle Trading: 2021-12-09.

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Live Cattle Technical Analysis Summary

Sell Stop: Below 137.18

Stop Loss: Above 140.24

IndicatorSignal
RSINeutral
MACDSell
MA(200)Buy
FractalsNeutral
Donchian ChannelNeutral
Parabolic SARSell

 

Live Cattle Chart Analysis

Live Cattle Technical Analysis

The technical analysis of the LCATTLE price chart in daily timeframe shows #C-LCATTLE,Daily is testing a support line above the 200-day moving average MA(200), which is rising itself. We believe the bearish momentum will continue as the price breaches below 137.18. A pending order to sell can be placed below that level. The stop loss can be placed above 140.24. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Fundamental Analysis of Commodities – Live Cattle

US cattle slaughter volume rose last week. Will the LCATTLE price retracement down continue?

The US Department of Agriculture reported domestic cow slaughter numbers are rising: 676,000 were slaughtered in the week ending December 4 2021 – up from 556,000 the previous week and above the 669,000 in the same period a year ago. The beef production numbers are as follows for the same time periods (in millions of pounds) – 562.6; 470.5; 561.6. At the same time Rabobank estimates US beef cow numbers will fall 1.8% year over year to a January 1, 2022 inventory of 30.6m head, as stated in its 2022 protein outlook. Rising slaughter volumes reflect high demand for beef and expectations of falling beef cow numbers mean lower beef supply expectations, which are bullish for LCATTLE price. However, the current setup is bearish for LCATTLE price.

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