Falling grain supplies bullish for LCATTLE
Technical Analysis Summary Live Cattle: Buy
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Buy | |
| Donchian Channel | Neutral | |
| MA(200) | Buy | |
| Fractals | Buy | |
| Parabolic SAR | Buy |
Chart Analysis
On the daily timeframe #C-LCATTLE: Daily is rising above the 200-day moving average MA(200), which is falling. We believe the bullish momentum will continue after the price breaches above the upper Donchian boundary at 113.33. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 109.08. 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 (109.08) without reaching the order (113.33) we recommend cancelling the order: the market sustains internal changes which were not taken into account.
Fundamental Analysis of -
US supplies of soybean, corn and wheat fell in three months ending in September 1. Will the LCATTLE continue rising?
US Department of Agriculture quarterly report of September 30 showed domestic supplies of soybean, corn and wheat fell in the three months ending in September 1 more than expected. As a result of the report prices of futures on soybeans, corn and wheat rose more than 3%. Feed grain prices are a primary input in producing animal protein. Lower feed grain supplies and higher feed prices are bullish for LCATTLE.