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Howdy Cattle Hustlers!
I've been watching the cattle sector since this week's MOTW is Feeder
Cattle. Yet, the one I like to trade is Live Cattle so that is the one
I've been watching.
First off, I entered a recent formation into the calc and watched it
each day as it was coming down. As I came to 9/16, I noticed it bottomed
at 6900. I was expecting 6907 (a whooping $28 dollars!) for that day
(note the first calc for 9/16 below). This was found in Level 2 support.
Now, as TIME moved on, the prices dynamically changes to adjust with the
market. Pure Fibonacci math. As we came down to today (9/18), notice
that prices came and tested Level 2 again, but this time Level 2 is at
68.87. The low in Dec Live Cattle was also 68.87.
Now I've been in this trade since Tuesday, long at 69.20. I've placed my
stop below 68.60 since that was Level 3 support. So when it made the
next test down on support, I remained in the trade. I even added a
contract for GP.
Since I don't expect to test this support line 3 times, I will now move
my stops up to below the L2 support line for 9/19 (not shown). If
stopped out, I'm out cheap and glad to be out. It would be heading down
to the next support level (the next price in the food chain).
I anticipate however that Live Cattle should now move up a short term
spell.
You have been informed, the risk is real low.
I bid you good trading.
cheers!
:)
rick
--
FutureSoft Publishing - The Trading Calculators (TTC)
Market Forecast Of The Week - >>>>> http://FSoftPublishing.com <<<<<
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