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May 09, 2023The Livestock future has been losing ground for 7 days Today's positive session could indicate a brief correction amid a broader downtrend, or, the start of a potential reversal. After closing the previous trading day at $161.93, CME Live Cattle is up to $162.57 per pound, which makes for a move of 0.4%/65 cents today.
Concerning technical analysis and more specifically, trend indicators, the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Japanese candlestick formations show a "Bullish Engulfing" pattern — a scenario when a larger green candle engulfs a smaller red candle, at the bottom of a prevailing downtrend. Typically this is a signal of higher prices in the near term. According to asset volatility analysis, CME Live Cattle's lower Bollinger Band® is at $161.47, indicating that the market is oversold and fertile for new buyers.
With market volatility ebbing, the current technical outlook indicates CME Live Cattle will remain range-bound for the immediate future.
This rally in Live Cattle's price coincides with other Meats as Feeder Cattle gained 0.87% and is now trading at $223.35.
Also worthy of note, projections for United States Crude Oil Inventories are set for a continuation of decline with -1.6 million while previous data was -1.28 million; data will be released tomorrow at 14:30 UTC.
Furthermore, the market is looking at United States Consumer Price Index figure is projected at 0.4%. It previously stood at 0.1%; data will be released tomorrow at 12:30 UTC. United States Core Consumer Prices is expected tomorrow at 12:30 UTC.
Trading mostly sideways for 11 months. Over the past a month, Live Cattle has retreated 3.72% from a noteworthy peak of $168.18.
