LIVECATTLE finds buyers again around 96.625
Live Cattle (LIVECATTLE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
LIVECATTLE finished the week -0.69% lower at 97.075 after losing $1.175 (-1.2%) today on low volume. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (LIVECATTLE as at May 22, 2020):
Friday's trading range has been $1.675 (1.71%), that's far below the last trading month's daily average range of $2.868. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LIVECATTLE.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on February 24th, LIVECATTLE lost -1.96% on the following trading day.
Prices are trading close to the key technical support level at 96.400 (S1). After having been unable to move lower than 96.875 in the prior session, the market found buyers again around the same price level today at 96.625.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 99.800 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 96.125 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Live Cattle. Out of 85 times, LIVECATTLE closed higher 54.12% 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 nine trading days, showing a win rate of 51.76% with an average market move of 0.13%.
With two out of the other two Meat and Livestock Commodity Markets closing lower today, the ones that stand out on the negative side are LEANHOGS losing -2.16% and FEEDCATTLE closing -0.14% lower. None of the markets managed to end the day in the green. Read more