How high are the cattle prices?
- April 05, 2021
- Mike Seery
- Commodity Trading, Feeder Cattle Futures, Futures Trading, Lean Hog Futures, Live Cattle Futures, Cattle Futures, Mike Seery, Milk Futures, Seery Futures
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Cattle Futures –Cattle futures in the June contract fell significantly this Monday afternoon in Chicago by 187 points to 124.42, or 1.53%, hitting a new 1-year high that continues its upward momentum as this is one of the strongest uptrends of any sector is.
If you’ve followed my previous blogs you will understand that I continue to believe that prices will crack the 130 level in the coming days as I see no reason to be short and when you are long, it kicks in Futures contract continues the stop loss at 118.57 as an exit strategy, but there the chart structure will improve daily as the monetary risk is also reduced. The volatility begins to expand upwards. So make sure you are placing the right number of contracts while maintaining a reasonable 2% risk management rule on any given trade as I believe this trend is up.
Currently, livestock is trading well above its 20 and 100 day moving average, which suggests the trend is higher, and as I said earlier, I think the range between pigs is finally catching up as the livestock sector takes on a long-term secular upward trend in my view.
The next major level of resistance is in the 127 area and if that is broken the prices could apply to the races as you should try to add more contracts for any type of price weakness as the risk / reward would also decrease.
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