Chart: $LE_F (Cattle) Looking To Move Off Its Base

Cattle Front Month: One-Year Chart. Cattle has been basing for over a month now after parachuting to lows.

I use the one-month chart to identify major moves. Changing conditions in the fundamentals could drive Cattle prices above 23/30 EMA. RSI indicator: neither overbought nor oversold. Buy point 109. Pyramid positions at the 50 SMA (funds like it here). Stop loss 102.5 support. Remember to watch for confirmation by volume. Note that feeder cattle, a leading indicator of cattle, is up ahead today.

Remember: buy the rumors, sell the fact. The emotional buying on good news usually fades away as a distant memory within a day.

Advertisements
This entry was posted in Agriculture, Recommendations, Technical Analysis, Trading Plan. Bookmark the permalink.

2 Responses to Chart: $LE_F (Cattle) Looking To Move Off Its Base

  1. Anthony says:

    Where do you think silver is headed next week?

    • lima99us says:

      Thanks for the question! Silver is very likely to be range-bound next week as QE2 is winding down and the market is unclear on QE3. “Hot money” (speculative positions) exited silver and won’t return until margin req. is lower and/or bullish technical signals. The bulls should use this opportunity to add positions at these cheap prices.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s