FCATTLE Technical Analysis | FCATTLE Trading: 2021-01-15 | IFCM
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FCATTLE Technical Analysis - FCATTLE Trading: 2021-01-15

Feeder Cattle Technical Analysis Summary

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Strong SellSellNeutralBuyStrong Buy

Below 132.51

Sell Stop

Above 140.48

Stop Loss

Ara Zohrabian
Senior Analytical Expert
Articles 2451
IndicatorSignal
RSI Neutral
MACD Sell
Donchian Channel Sell
MA(200) Sell
Fractals Sell
Parabolic SAR Sell

Feeder Cattle Chart Analysis

Feeder Cattle Chart Analysis

Feeder Cattle Technical Analysis

On the daily timeframe #C-FCATTLE: D1 has breached below the 200-day moving average MA(200), which has leveled off. We believe the bearish momentum will continue after the price breaches below the lower Donchian boundary at 132.51. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 140.48. After placing the pending order the stop loss is to be moved every day to the next fractal high indicator, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (140.48) without reaching the order (132.51) we recommend cancelling the order: the market sustains internal changes which were not taken into account.

Fundamental Analysis of Commodities - Feeder Cattle

Rising corn prices make cattle raising more expensive as feeding costs rise. Will the FCATTLE continue declining?

Corn prices have risen over 22% since the start of December, which makes feed more expensive for raising cattle. Particularly, mid-2020 estimates indicate each $0.10 increase in corn price results in an increase in feeding cost of gain (total cost to feed your cattle divided by the total pounds gained) of around $0.87 per 100 pounds in US. Rising feeding cost makes feeding cattle more expensive which is bearish for FCATTLE. On the other hand, meat shipments to China, world’s biggest consumer of meat, were up 60.4% over year in 2020. China’s demand for meat was boosted after a plunge in its pork output. Continued higher Chinese meet imports are an upward risk for FCATTLE.

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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

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