Cattle Futures Technical Analysis | Cattle Futures Trading: 2023-05-29 | IFCM India
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Cattle Futures Technical Analysis - Cattle Futures Trading: 2023-05-29

Live Cattle Technical Analysis Summary

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Strong SellSellNeutralBuyStrong Buy

Above 166

Buy Stop

Below 157

Stop Loss

Mary Wild
Senior Analytical Expert
Articles 2058
IndicatorSignal
RSI Neutral
MACD Buy
MA(200) Neutral
Fractals Buy
Parabolic SAR Buy
Bollinger Bands Neutral

Live Cattle Chart Analysis

Live Cattle Chart Analysis

Live Cattle Technical Analysis

On the daily timeframe, LCATTLE: D1 is in a long-term uptrend and has formed an ascending triangle pattern. It should break out to the upside before opening a position. Several technical analysis indicators have generated signals for further upward movement. We do not rule out a bullish movement if LCATTLE: D1 rises above the last high and the upper Bollinger Band line at 166. This level can be used as an entry point. The initial risk can be limited below the Parabolic signal, the last three lower fractals, the lower Bollinger Band line, and the 200-day moving average line, around 157. After opening a pending order, the stop loss can be adjusted along with the Bollinger Band and Parabolic signals to the next fractal low. This way, we improve the potential profit/loss ratio in our favor. The most cautious traders can switch to the four-hour chart after entering the trade and set a trailing stop loss in the direction of the movement. If the price surpasses the stop level (157) without activating the order (166), it is recommended to cancel the order as there are internal changes happening in the market that were not considered.

Fundamental Analysis of Commodities - Live Cattle

In the US, beef production has decreased. Will the growth of LCATTLE quotes continue?

According to the United States Department of Agriculture (USDA), frozen red meat stocks in the United States decreased by 5% y/y as of May 1, 2023, compared to the same date in 2022. Specifically, frozen beef stocks decreased by 16% y/y and 6% m/m. Beef production in the United States in April 2023 decreased by 11% y/y and amounted to 2.07 billion pounds. The main reason for this decline has been the ongoing drought. It's worth noting that the USDA does not rule out further reductions in beef production in the United States, with an expected 8% y/y decrease in 2024. Currently, the price of LCATTLE (Live Cattle Futures) is approximately at the level seen in early February of the current year. Meanwhile, FCATTLE (Feeder Cattle Futures) prices have increased by over 25% during the same period.

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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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