Volumes of the cattle slaughter have increased in the US
The U.S. Department of Agriculture reported an increase in the number of the cattle slaughter. Will LCATTLE prices fall?
According to the USDA, in a week, which ended on November 2, 589 thousand head of cattle were slaughtered in the US. This is more than a week earlier - 582 thousand, and in the same week in 2017 - 585 thousand. Market participants do not exclude that farmers want to sell more beef before the American holiday “Thanksgiving Day” on November 22. A traditional feast during the Thanksgiving celebration in the United States is turkey meat. There is a risk of decrease in demand for beef.
On the daily timeframe, LCATTLE: D1 has breached down the support line of the accelerated uptrend. The medium-term uptrend persists, but prices are correcting down from the 9-month high, and a number of technical analysis indicators show signals to sell. The decrease in demand can contribute to the further correction.
Summary of technical analysis
Position Sell
Sell stop Below 117
Stop loss Above 121
The U.S. Department of Agriculture reported an increase in the number of the cattle slaughter. Will LCATTLE prices fall?
According to the USDA, in a week, which ended on November 2, 589 thousand head of cattle were slaughtered in the US. This is more than a week earlier - 582 thousand, and in the same week in 2017 - 585 thousand. Market participants do not exclude that farmers want to sell more beef before the American holiday “Thanksgiving Day” on November 22. A traditional feast during the Thanksgiving celebration in the United States is turkey meat. There is a risk of decrease in demand for beef.
On the daily timeframe, LCATTLE: D1 has breached down the support line of the accelerated uptrend. The medium-term uptrend persists, but prices are correcting down from the 9-month high, and a number of technical analysis indicators show signals to sell. The decrease in demand can contribute to the further correction.
- The Parabolic indicator gives a bearish signal.
- The Bollinger bands have narrowed, which indicates low volatility.
- The RSI indicator is below 50. It has formed a negative divergence.
- The MACD indicator gives bearish signals.
Summary of technical analysis
Position Sell
Sell stop Below 117
Stop loss Above 121