Technical Analysis #C-LCATTLE : 2021-03-04

[IFC Markets]

Recommendation for Live Cattle:Sell​

Sell Stop : Below 117.49

Stop Loss : Above 123.52



RSI : Neutral

MACD : Sell

Donchian Channel : Sell

MA(200) : Buy

Fractals : Neutral

Parabolic SAR : Sell

Chart Analysis​

The #C-LCATTLE technical analysis of the price chart in daily timeframe shows #C-LCATTLE,Daily has fallen below the support line above the 200-day moving average MA(200), which is rising itself. We believe the bearish momentum will continue as the price breaches below 117.49. A pending order to sell can be placed below that level. The stop loss can be placed above 123.52. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Fundamental Analysis​

US cattle slaughter volume rose last week. Will the LCATTLE continue falling? Last week US cattle slaughter volume rose to 666,000 heads, approaching a high for this year to date, exceeding last year weekly average level by 38,000. The previous two weeks slaughter volumes were lower at 552,000 and 608,000 heads, creating a dip in supply. Higher slaughter volumes raise supply, which is bearish for live cattle price. At the same time analysts estimate meat packers could pay up to $144 per 100 lb without losing money, assuming a 1300 lb weight average for both steers and heifers. Higher demand from meat packers is an upside risk for price.