Feed Cattle

Today was all about the reaction to the downward sloping trendline. It met stiff rejection, but closed off it's lows on the close. Today's action saw resistance @ the trendline and 10 day EMA; we saw support @ 50 day EMA, 50% retracement, Weekly S2, and Monthly R1. We did see a close back < Weekly S1. Tomorrow is setting up to be a very interesting day. The 50 day EMA and 50% retracement level have been offering solid support the past 4 days. If we can get a close below the previous swing low of 99.05, then it shouldn't be long before the objective of 97.575 is reached.

Feed Cattle

Well we did get that bounce today off the 50% retracement level and the 50 day EMA. The market closed back above the 20 day EMA; weekly S1, S2; and monthly R1, too. Resistance was found @ the 10 day EMA and the downward sloping trendline off the previous two swing highs. We are still seeing lower highs and lower lows, but today's action changed the tone from bearish to neutral. I'm keeping my stop @ 101.80 for now. Tomorrow's key will be the reaction to the downward trendline.

Feed Cattle

We saw some bearish action today: closed down 0.70 and near it's lows; closed below the weekly S1 and S2; closed slightly below the 50% retracement; and met resistance @ 20 day EMA. It did find support at 50 day EMA. Let's see if we get a bounce off the 50 day and retracement level or if we get more selling.

Feed Cattle

Today was definitely an interesting day. The market had a gap down open due to news of the Swine Flu. I don't initiate positions on big gaps, so I waited for the market to fill the gap. Then I entered short when the market traded back down through 100.125. Today's closing price was 99.75 confirming the H&S Top pattern. It found support @ the 50% retracement of the recent move up, and both the weekly S1 and S2 pivot points. These areas will be our next obstacles along with the 50 day EMA.

Feed Cattle

Friday's action made a late attempt at the 100.125 breakout level, but didn't get there. It closed @ 100.35 and stayed below it's 10 day EMA for a second day in a row. We got a slight bearish cross on the MACD and I expect a breakout attempt on Monday. The key will be to get through support of a previous swing high @ 100.025, the 20 day EMA, and the 38% retracement level of the current short term uptrend.

Feed Cattle

There's a potential Head & Shoulders Top forming in the Aug Feed Cattle. Look to get short below 100.125. The target would be around 97.575 with an initial stop at 101.80. This trade set-up would have a risk of 825.00 and a reward of 1285.50 (1.56 ratio). MACD has a possible bearish cross and a previous swing low was taken out, which supports this set-up. Obstacles to this trade include the 38% retracement and 20 EMA at the breakout level, and a bullish RSI (+50). Let's see what happens tomorrow.