FEEDCATTLE closes below its opening price unable to hold early session gains
Feeder Cattle (FEEDCATTLE) Technical Analysis Report for Aug 19, 2019 | by Techniquant Editorial Team
FEEDCATTLE finished Monday at 133.075 gaining $0.250 (0.19%). Trading $1.025 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on August 15th, FEEDCATTLE lost -0.67% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (FEEDCATTLE as at Aug 19, 2019):
Monday's trading range has been $2.625 (1.95%), that's slightly below the last trading month's daily average range of $2.788. 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 strongly higher than usual for FEEDCATTLE.
One bearish candlestick pattern matches today's price action, the Black Candle.
Unable to break through the key technical resistance level at 135.475 (R1), Cattle closed below it after spiking up to 135.650 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move above 135.275 in the prior session, the contract ran into sellers again around the same price level today, failing to move higher than 135.650.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 132.425 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Feeder Cattle. Out of 398 times, FEEDCATTLE closed lower 54.02% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 51.26% with an average market move of -0.26%.
With two out of the other two Meat and Livestock Commodity Markets closing higher today, the ones that stand out on the positive side are LEANHOGS gaining 3.87% and LIVECATTLE closing 0.34% higher. None of the markets ended the day in the red. Read more