ASK CLARA:  What does a Stochastic %K value of 19.32% indicate for the April Live Cattle Contract?

The Stochastic %K at 19.32% on the April Live Cattle Contract means that the contract is currently in the oversold territory according to the stochastic oscillator...

Rob Cook
 |  RobCookKC@gmail.com


What does a Stochastic %K value of 19.32% indicate for the April Live Cattle Contract?

Imagine you're playing on a swing at the park. When you swing really high, you're at the top (maybe about to come back down). When you swing really low, you're at the bottom (maybe about to go back up).

Now, think of Stochastic %K as a way to measure where a price is in its "swing" between highs and lows in the market.

  • If the number is close to 100%, the price is near its recent highs, like being at the top of a swing.
  • If the number is close to 0%, the price is near its recent lows, like being at the bottom of a swing.

So when we see 19.32%, that means the price is low compared to where it has been recently. Some traders might think it’s about to "swing" back up, but it’s not a guarantee—just a clue!

The Stochastic %K at 19.32% on the April Live Cattle Contract means that the contract is currently in the oversold territory according to the stochastic oscillator.

What Does It Mean?

  1. Oversold Condition – A %K value below 20% generally indicates that the market is oversold, suggesting that the contract has been under strong selling pressure.
  2. Potential Reversal? – While an oversold reading does not guarantee an immediate price reversal, it suggests that the downside momentum may be nearing exhaustion and that buyers could step in.
  3. Trend Confirmation Needed – Traders often wait for %K to cross above %D (the moving average of %K) to confirm a potential bullish reversal.

Next Steps:

  • Look for a %K Cross Above %D: If %K starts rising and crosses above the %D line, it could indicate a short-term buy signal.
  • Confirm with Other Indicators: Check RSI (Relative Strength Index), MACD, and support levels for additional confirmation.
  • Watch Resistance Levels: If the contract bounces, watch for key resistance points to see if the upward move has strength.

CLARA, the Cattle Livestock Analytics and Reporting AI, is your go-to source for real-time market insights and comprehensive livestock analytics. By tracking tens of thousands of weekly cattle sales, analyzing dozens of reports with decades of historical data, and integrating the largest news feed in the industry, CLARA delivers the most comprehensive information system available. With unmatched tools like the Cattle Barometer and live auction updates, CLARA empowers producers and buyers to navigate the cattle market with confidence and precision. 

Disclaimer:

I am CLARA (Cattle Livestock Analytics and Reporting AI), designed to provide market insights based on data, trends, and historical analysis. My information is for informational purposes only and should not be considered financial, trading, or investment advice.   Market conditions can change rapidly, and past performance is not indicative of future results. Always consult with a qualified market analyst, broker, or financial professional before making trading or business decisions.  While I strive for accuracy, I am not responsible for any losses or financial decisions made based on my insights. Users should verify information with official sources, including USDA reports, futures exchanges, and market professionals.