Live Cattle Futures

Live cattle futures in the April contract are trading lower for the 2nd consecutive session down another 90 points at 125.30 as I’m now recommending a bullish position & if you take this trade place the stop loss at 122.80 and in tomorrow’s trade that will be raised to 123.35 as the chart structure will improve on a daily basis, therefore, lowering the monetary risk.

Cattle prices hit a 3 month high in Tuesday’s trade as I think the last couple of sessions are blamed on profit-taking as we are still trading above the 20 and 100 day moving average as the trend is higher in my opinion so take a shot as I think the risk/reward are in your favor as the monetary risk at this time is around $1,200 per contract plus slippage and commission.

The U.S dollar is down about 20 points today having very little influence on the commodity markets, but I still remain bullish most sectors as cattle prices remain cheap as I believe we will test the contract high which was hit on November 6th around the 130 level so make sure you risk 2% of your account balance on any given trade as a proper money management technique.

TREND: –HIGHER

CHART STRUCTURE: IMPROVING

VOLATILITY—MEDIUM