Live Cattle Futures—Cattle futures in the June contract is currently trading higher by 30 points at 124 .92 hitting another contract high continuing its bullish momentum as I still think there is room to run to the upside.
If you have been following my previous blogs you understand that I think cattle prices could hit the 130 level and possibly even go higher and if you are long a futures contract I would continue to place the stop loss under the 10-day low which now stands at 120.37 as an exit strategy as the chart structure will also improve on a daily basis therefore the monetary risk will be reduced substantially.
Cattle prices are trading far above their 20 and 100 day moving average as this trend is strong to the upside and probably the strongest market except for hogs and U.S equities as both sectors continue to climb.
At the current time all of my recommendations are to the upside as I think the commodity markets will start to surge throughout the rest of 2021 as I see no reason to be short cattle or anything at this time. The next major level of resistance on the monthly chart stands around the 127 level and if that is broken look for higher prices ahead as the volatility certainly will start to increase in the coming days ahead especially during the summer months so stay long.
CHART STRUCTURE: IMPROVING
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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