Live Cattle Technical Analysis Summary

 Live Cattle Technical Analysis Summary

Live Cattle Technical Analysis Summary.

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Buy Stop: Above 134.82

Stop Loss: Below 130.18

IndicatorSignal
RSINeutral
MACDBuy
Donchian ChannelNeutral
MA(200)Buy
FractalsBuy
Parabolic SARBuy

Live Cattle Chart Analysis

Live Cattle Technical Analysis

The technical analysis of the LCATTLE price chart on the daily timeframe shows #C-LCATTLE,Daily is rebounding above the 200-day moving average MA(200), which is rising itself. We believe the bullish momentum will continue after the price breaches above the upper Donchian boundary at 134.82. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 130.18. After placing the pending order the stop loss is to be moved every day to the next fractal low, following Parabolic indicator signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (130.18) without reaching the order (134.82) we recommend cancelling the order: the market sustains internal changes which were not taken into account.

Fundamental Analysis of Commodities – Live Cattle

Larger US cow slaughter and USDA beef import forecast upgrade point to rising beef demand for 2021. Will the LCATTLE price continue rising?

The US Department of Agriculture reported domestic cow slaughter numbers are on the rise: 668,000 were slaughtered in the week ending October 30 2021 – up from 661,000 the previous week and above the 640,000 in the same period a year ago. The beef production numbers are as follows for the same time periods (in millions of pounds) – 555.6; 548.9; 537.4. And the slaughter volume this week is on track for another week of 660+ thousand cattle. Rising slaughter volumes reflect high demand for beef, which is bullish for LCATTLE price. At the same time in its latest Livestock, Dairy, and Poultry Outlook report USDA raised its 2021 annual forecast for beef imports to 3.187 billion pounds from a month ago – this is a downside risk for the price.

By Ara Zohrabian – IFC Markets

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