FCATTLE Technical Analysis | FCATTLE Trading: 2019-07-01 | IFCM India
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FCATTLE Technical Analysis - FCATTLE Trading: 2019-07-01

Getting ready for the publication of the USDA report

U.S. The Department of Agriculture (USDA) reported that by the end of May this year, frozen beef stocks in the United States were 13% lower than the same period in 2018. Will the Fcattle quotations increase?

According to the USDA, the daily slaughter of cattle (cattle) in the United States last week amounted to 122 thousand heads, which is almost 2% more than last year. We also note that by June 1 of this year, the number of cattle in the US feedlots reached a historical maximum of 11.7 million heads, which was 2% on June 1, 2018. Meanwhile, in May, deliveries of cows to feedlots decreased by 3% from last year’s level. If this trend of reduction has lasted in June, then the livestock as of July 1 may decrease. This is able to push quotes up. June data will be published on July 19.

Fcattle

On the daily timeframe Fcattle: D1 broke up the downtrend resistance line. Various technical analysis indicators have generated uptrend signals. Further growth of quotations is possible in case of reduction in the number of cattle at feedlots in the USA.

  • The Parabolic indicator indicates an uptrend signal.
  • The Bolinger bands narrowed, indicating volatility decrease.
  • The RSI indicator is near the 50 mark. It has formed a divergence to increase.
  • The MACD indicator indicates bullish signal.

The bullish momentum may develop in case if Fcattle exceeds its last upper fractal: 138.5. This level can be used as an entry point. The stop loss can be placed lower than the last minimum (since April 2018), the Parabolic signal, the lower Bollinger line and the last lower fractal: 130.5. After placing the order, the stop loss shall be moved following the signals of Bollinger and Parabolic to the next fractal minimum. Thus, we are changing the potential profit/loss to the breakeven point. More risk-averse traders may switch to the 4-hour chart after the trade and place a stop loss moving it in the direction of the trade. If the price meets the stop level (130,5) without reaching the order (138,5), we recommend to cancel the order: the market sustains internal changes that were not taken into account.

Technical Analysis Summary

PositionBuy
Buy stopAbove 138,5
Stop lossBelow 130,5

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Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

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