Are Cattle Prices Going To 110 ?

Are Cattle Prices Going To 110 ?
Are Cattle Prices Going To 110 ?

Live Cattle Futures—Cattle futures in the April contract is trading lower for the 4th consecutive session as prices are now hovering right near a 4 month low all due to major concerns about the Coronavirus spreading very quickly throughout the world sending shockwaves throughout many different sectors once again in today’s trade.

I have been recommending a bearish position from around the 124.50 level and if you took that trade the stop loss has now been lowered to 127.80 as an exit strategy as the structure will improve on a daily basis beginning in next week’s trade.

In my opinion I believe prices could test the contract low hit on September 9th at 109.37 as there could be significant room to the downside in my opinion as I also believe hog prices are headed lower, but I’m not involved in that market as that is sharply lower once again today so stay short as the risk/reward is still in your favor for lower prices ahead.

Cattle prices are trading below their 20 and 100 day moving average as this trend has turned very quickly after breaking out of a tight 11 week consolidation pattern as I will possibly be looking at adding more contracts to the downside once the chart structure improves.

TREND: LOWER

CHART STRUCTURE: POOR

VOLATILITY: HIGH

 

 

 If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com

 

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