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FCATTLE Technical Analysis - FCATTLE Trading: 2020-06-26
Feeder Cattle Technical Analysis Summary
Above 135.66
Buy Stop
Below 129.19
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Sell |
| Donchian Channel | Neutral |
| MA(50) | Buy |
| Fractals | Buy |
| Parabolic SAR | Buy |
Feeder Cattle Chart Analysis
Feeder Cattle Technical Analysis
On the daily timeframe #C-FCATTLE: D1 is retracing up above the 50-day moving average MA(50), which is rising. We believe the bullish momentum will continue after the price breaches above the upper Donchian boundary at 135.66. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 129.19. After placing the pending order the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (129.19) without reaching the order (135.66) we recommend cancelling the order: the market sustains internal changes which were not taken into account.
Fundamental Analysis of Commodities - Feeder Cattle
USDA reported a drop in frozen US meat inventory. Will the FCATTLE continue rising?
US frozen meat supplies have been falling as frozen meat was consumed amid falling meat production when slaughterhouses and processing plants were shut down during the coronavirus outbreak. The total US red meat supplies (includes beef, pork and mutton) in freezers were estimated down 18% from the previous month by US Department of Agriculture National Agricultural Statistics Service (NASS) monthly report released Monday. Lower meat supply is bullish for the feeder cattle price. However while cattle placements have been declining to normal levels estimated at 99% for May above expectations of 96%, according to US Department of Agriculture’s monthly Cattle on Feed report released last Friday, there is still a massive cattle backlog as slaughterhouses are yet returning to normal operation after shutdowns. Increasing meat production is a downside risk for the feeder cattle price.
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