LIVECATTLE finds buyers around 99.175 for the third day in a row
Live Cattle (LIVECATTLE) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, LIVECATTLE ended the week 0.12% higher at 100.175 after gaining $0.425 (0.43%) today. Trading up to $0.350 lower after the open, the contract managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, LIVECATTLE actually lost -0.90% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (LIVECATTLE as at Jul 10, 2020):
Friday's trading range has been $1.050 (1.06%), that's below the last trading month's daily average range of $1.625. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LIVECATTLE. Prices continued to consolidate within a tight trading range between 98.925 and 100.425 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 99.825 (now S1), which is likely to act as support going forward. Cattle found buyers again today around 99.175 for the third trading day in a row after having found demand at 99.000 in the previous session and at 98.925 two days ago.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 100.425 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 98.925 where further sell stops might get triggered. Trading close to May's high at 103.175 we could see further upside momentum if potential buy stops at the level get activated.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Live Cattle. Out of 424 times, LIVECATTLE closed lower 57.08% 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 52.36% with an average market move of -0.35%.
With one of the other Meat and Livestock Commodity Markets closing higher and one closing lower today, the winners of the day are FEEDCATTLE surging 0.96%. On the flipside the worst performer has been LEANHOGS closing -1.62% lower. Read more