After closing the previous trading day at $163.1, CME Live Cattle is up to $163.62 per pound, which makes for a move of 0.32%/52.5 cents today.
Trend-following investors would be interested to note that 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 "gravestone doji” chart pattern — a bearish pattern that suggests a reversal followed by a downtrend in the price action. Analysis based on the asset volatility indicates that the Livestock future's lower Bollinger Band® is at $160.44, indicating that the market is oversold and fertile for new buyers.
Notwithstanding the Livestock future's appreciation in recent days, the technical outlook suggests its bullish run is now fading.
The market is looking forward to the release of new data: United States EIA Short-Term Energy Outlook will be released tomorrow at 16:00 UTC.
The commodity has been trending positively for about 10 months. CME Live Cattle has fallen back around 3.02% over the past 10 days, from a notable high of $168.18.