Cattle Futures—Cattle futures in the February contract is slightly lower for the 3rd consecutive session down another 37 points at 125.42 as I’m keeping a close eye on this market for a possible short position as I do think prices are getting expensive.
Cattle prices are now trading slightly below their 20 day moving average for the 1st time in months, but still far above their 100 day as the trend is mixed, however I will wait for the breakout to occur as the 4 week low stands at 123.12 as that is when I will be recommending a short position.
If you take a look at the feeder cattle market prices are much weaker than live cattle as that could be a foreboding situation in the coming days ahead as we have had a 20% rally from the September 9th low around the 105 level coupled with the fact that the uptrend line also has been broken as I think a special situation could be brewing at the present time, but be patient and wait for the breakout to occur first.
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