October live cattle futures have seen a sharp sell off from higher levels this week. No serious chart damage has yet occurred. An uptrend line on the daily bar chart is still in place, but just barely. However, the bears have gained some fresh near-term downside technical momentum.
Bears would gain better downside technical momentum to begin to suggest a near-term top is in place, if they can push and close prices below the uptrend line and below solid technical support at $89.00.
click the chart to enlarge
See on the chart that the two popular moving averages I follow (9- and 18-day) are poised to very soon produce a bearish line crossover signal, whereby the 9-day crosses below the 18-day moving average.
The bulls would regain some upside technical momentum if they could produce a close above solid chart resistance at $92.00. Trading activity on Friday could be extra important for cattle futures traders.
NOTE: I have recently completed an e-book called “The Art of Effective Stop Order Placement in Trading Markets.” You can buy it for $14.95 by clicking on the “SUBSCRIBE” section of my website at www.jimwyckoff.com . If you are like many traders who feel your protective stop placement methods need improvement, then my e-book will be a valuable resource to you. I also recently finished an e-book entitled “62 Rules Used by Profitable Futures Traders,” which sells for $19.95. That’s the best trading investment for 20 bucks you’ll ever make.–Jim
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