Are Cattle Prices Going Lower ?

Live Cattle Futures---Cattle futures in the August contract settled last Friday in Chicago at 95.40 while currently trading at 95.85 up slightly for the trading week still hovering right near a 7-week low.

As I have written about in previous blogs I'm looking at a possible short position if prices break the 93.57 level as that would be breaking major support in my opinion while also breaking out all of a 7-week consolidation pattern as prices look to have topped out in the short-term.

Cattle prices are trading under their 20 and 100 day moving average as the trend has turned to the downside, however the volatility has come to an absolute crawl over the last several weeks as we have witnessed huge volatility in 2020 and I think that situation will return, but it does make the chart structure outstanding therefor the risk/reward would be in your favor to take a short position if the breakout does occur.

Hog prices were sharply lower in today's trade as that market has hit another fresh contract low as the entire livestock sector remains bearish so look to play this to the downside in my opinion as I think there could be more room to run.

TREND: LOWER--MIXED

CHART STRUCTURE: EXCELLENT

VOLATILITY: AVERAGE

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