Live Cattle (Cash) forum
CATTLE My Next 24 hours on Cattle. Alright, at $2,054.74 an ounce right now, Mr. Gold is consolidatin' tighter than my Uncle Vinny in the holiday season. The hourly chart shows its coiler than a rattlesnake ready to strike, wedged between the 21 EMA on the upside and the 50 fib level on the downside.My professional prognosis is we gotta make like Mother Theresa here and wait it out. I expect gold to keep up this waiting game for another 8-12 hours before pickin' a direction. Youse got rising yields and a hot CPI print mixin' it up with Ukraine and China worries - too many headlines flyin' around like Joe Frazier fists in the Thrilla in Manilla!
When it pops, the technical tea leaves tell me ole yeller wants to test that $2,070 resistance again. We break above the daily Ichimoku cloud on decent volume and I'll be singin' with Sinatra all night! But if the buck rallies hard, the shiny metal could revisit the $2,040 area quicker than my Nonna cookin' raviolis.
So consider this the calm before the storm. I say by this time tomorrow, gold makes a big splash one way or the other. We either get a rally back up the charts or plunge off the high board.
CATTLE This weeks Outlook. I believe Pepperstones trades between $1.775 and $1.83 this week - with a chance the bulls break past toward $1.85 if the stars and steer aligned just right. We closed last session right at $1.78070 per head of cattle. Charting the 21-day Moving Average and Fibonacci Retracements and such, I have near-term support at $1.775 with resistance at the 23.6% line around $1.795.
Slow Stochastics model shows we have some room to run. With the %K line around 60 and %D moving up strong, my calculations tells me momentum is building - we could see a test of that resistance in coming days.
And the RSI shows bull forces and bear forces are near equal footing, so any catalyst could tip scales and send these doggies boltin'.
Fundamentally, buoyant demand against middling supply and inventory numbers gathered from the USDA databases tells me conditions still slightly favor buyers in the weeks ahead.
CATTLE With prices now below the $1.80 support threshold which has held for months, risks appear skewed bearishly. We could see continued liquidation towards $1.75 or lower as market conditions downshift.I foresee further downside over the next week towards $1.77, perhaps $1.75 if liquidations accelerates under current fundamentals.
