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Cattle Futures: Sideways Price Action Possible on October Contracts

16 September 2014
Jim Wyckoff Commentary -  TheCropSite

US - October cattle contracts moved seven cents, down for feeders and up for live cattle, reports TheCattleSite analyst Jim Wyckoff.

October cattle closed slightly higher $0.07 at 156.35. October cattle closed higher on Monday as it consolidated some of the decline off last week's high.

The mid-range close sets the stage for a steady opening when Tuesday's session begins trading. Stochastics and the RSI are neutral to bearish signalling that sideways to lower prices are possible near-term.

Closes below the 20-day moving average crossing at 152.60 would confirm that a double top has been posted.

If October renews the rally off August's low, July's high crossing at 160.70 is the next upside target. First resistance is last Wednesday's high crossing at 160.50.

Second resistance is July's high crossing at 160.70. First support is today's low crossing at 155.55. Second support is the 20-day moving average crossing at 152.60.

October feeder cattle closed down $0.07 at $225.85. October Feeder cattle closed lower on Monday. The low-range close sets the stage for a steady to lower opening when Tuesday's night session begins trading.

Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible near-term.

If October extends the rally off August's low into uncharted territory, upside targets will be hard to project.

Closes below the 20-day moving average crossing at 218.51 would confirm that a short-term top has been posted. First resistance is last Wednesday's high crossing at 228.20.

Second resistance is unknown. First support is the 10-day moving average crossing at 224.51. Second support is the 20-day moving average crossing at 218.51.

TheCattleSite News Desk

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any traders and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 1. Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.



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