Live Cattle (LC) is categorized as a “Submarine Market”. This is a market that is in a bear trend and very much oversold. Markets that are oversold can remain in oversold territory for extended periods. Eventually markets do return to normal levels. In the case of Submarine Markets they may rise to establish new bullish trends or present new opportunities to short in the near future. Markets on the Submarine list are simply over extended on the downside and in a position to reverse on a short term basis.
Our Trend Level indicator shows Live Cattle to be in a bear phase with a reading below -5.
Our Elastic Level indicators shows Live Cattle to be in oversold with a reading below -8.
Live Cattle (LC) is at a critical point as it’s sitting on support at 132. If support fails, it could be looking at a fall to 130/127.6/122.25. If however, we find support, then we might very well see a nice upside move. Our Seasonal projection (shown below) is looking for a 7% move in the near term.
So where is Live Cattle going …
At points like these it’s best to watch the systems. Currently they are partially hedged with a small short position. Live Cattle signals
