Though in the midst of a 7 day uptrend, gaining a total of 1.19%, ($2.07), Yesterday's session suggests run might be coming to an end — the Livestock future ended yesterday at $153.07 per pound following from closing Thursday at $153.35. Overall, this represents a loss of 27.5 cents or 0.18%.
A "bearish engulfing" pattern — a scenario when a larger red candle engulfs a smaller green candle, at the top of a prevailing uptrend. Typically this is a signal of lower prices in the near term. The Livestock future's upper Bollinger Band® is at $153.97 which indicates a further downward move may follow.
Following today's unexpected losses, extensive multifactorial technical analysis forecasts the Livestock future to buck against its prevailing uptrend and begin to dip lower in the short term. With all probabilities considered, the Live Cattle is expected to attract significant bearish sentiment in the coming days.
CME Live Cattle's value drop coincided with the fact that after ending yesterday's session at $179.25, Feeder Cattle lost 95 cents and is trading around $178.3.
The commodity has been trending positively for about 5 months. The past 3 months have been positive for CME Live Cattle as it added 8.6% compared to its 3-month low of $130.6.