LIVECATTLE breaks below Thursday's low
Live Cattle (LIVECATTLE) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
LIVECATTLE finished the month 9.84% higher at 99.900 after losing $1.225 (-1.21%) today. Closing below Thursday's low at 100.125, Cattle confirmed its breakout through the prior session low after trading up to $1.950 below it intraday.
Daily Candlestick Chart (LIVECATTLE as at May 29, 2020):
Friday's trading range has been $2.875 (2.85%), that's slightly above the last trading month's daily average range of $2.804. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LIVECATTLE.
Prices are trading close to the key technical resistance level at 101.475 (R1). After having been unable to move above 101.300 in the previous session, the contract ran into sellers again around the same price level today, missing to move higher than 101.050. The last time this happened on May 22nd, LIVECATTLE actually gained 2.68% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 101.300 where further buy stops could get activated. As prices are trading close to May's high at 103.175, upside momentum might speed up should the market mark new highs for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Live Cattle. Out of 503 times, LIVECATTLE closed higher 51.29% 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 53.88% with an average market move of 0.15%.
With one of the other Meat and Livestock Commodity Markets closing higher and one closing lower today, the winners of the day are LEANHOGS surging 2.52%. On the flipside the worst performer has been FEEDCATTLE closing -0.72% lower. Read more