FEEDCATTLE breaks back below 20-day moving average
Feeder Cattle (FEEDCATTLE) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
FEEDCATTLE finished the week 1.66% higher at 145.025 after edging lower $0.150 (-0.1%) today. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (FEEDCATTLE as at Jan 11, 2019):
Friday's trading range has been $1.225 (0.84%), that's slightly below the last trading month's daily average range of $1.541. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FEEDCATTLE. Prices continued to consolidate within a tight trading range between 144.375 and 145.725 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on October 12, 2018, FEEDCATTLE actually gained 0.64% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
The contract closed back below the 20-day moving average at 145.124. After having been unable to move lower than 144.500 in the previous session, Cattle found buyers again around the same price level today at 144.375.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might accelerate should prices move above the close-by swing high at 146.475 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Feeder Cattle. Out of 502 times, FEEDCATTLE closed higher 52.79% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 54.38% with an average market move of 0.22%.
With one of the other Meat and Livestock Commodity Markets closing higher and one closing lower today, the winners of the day are LIVECATTLE surging 0.33%. On the flipside the worst performer has been LEANHOGS closing -1.47% lower. Read more