Cattle Prices Sharply Lower On Virus Concerns

Live Cattle Futures—Cattle futures in the April contract is sharply lower by 150 points or 1.37% at 109.75 continuing its bearish momentum to the downside as the Coronavirus is spooking many commodity sectors once again today while also pushing the Dow Jones Industrial Average lower by 700 points.

I have been recommending a bearish position from around the 124.50 level over the last month or so and if you took that trade the stop-loss now stands at 119.15 & in tomorrow’s trade that will be reduced significantly to 116.00 as the chart structure will improve on a daily basis therefor the monetary risk will be reduced dramatically.

Cattle prices are right at a 6-month low, however for the bearish momentum to continue prices have to break the February 28th low of 107.47 as I think that situation will occur and if you have been following any of my previous blogs you understand I think prices could touch the 100 level soon. Demand at the current time is the main culprit as the Coronavirus is a major problem for the agricultural market and until that situation clarifies look for lower prices.

TREND: LOWER

CHART STRUCTURE: IMPROVING

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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