Live Cattle Futures—Live cattle futures in the August contract settled last Friday in Chicago at 103.30 while currently trading at 104.85 up about 150 points for the trading week bouncing off major support.
I have been recommending a bearish position from around the 106.30 level and if you took that trade place the stop loss above the 10 day high standing at 107.17, however the chart structure will not improve for another 8 trading sessions so the stop loss will remain the same.
Cattle prices are still trading under their 20 & 100 day moving average as the trend is lower coupled with the fact that the downtrend line remains intact so continue to play this to the downside while placing the proper stop loss.
In my opinion for the bearish momentum to continue we have to break the May 31st contract low of 102.30 as volatility is high at the present time and it will remain that way throughout the summer months.
Corn prices are up another $0.09 today hitting a 5 year high as that is negative towards feeder cattle and I think corn prices are going to break the $5 level soon and that could push cattle prices under 100 so stay short.
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