The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Market updates from Walsh Trading.
Live Cattle –
In four of the past five weeks Live Cattle made new highs. Last week was no exception. However, after making new highs on Thursday, sellers came in and a pullback resulted. The pullback formed a Bearish Engulfing candle. An engulfing candle formation is a two bar formation. The 1st candle’s open and close is engulfed by the 2nd candles’ open and close. It is considered a reversal formation. It can be either bullish or bearish. It depends where it takes place in the price action. This one is a bearish formation in my opinion. It also formed an outside day where it took out both the high and low of the previous day. It also covered the four days prior highs’ and lows’. This in my view is another negative condition. The weekly chart has also the makings of a reversal formation. Cattle had a strong rally 2 weeks ago and then made another new high this week. After making the new high Cattle couldn’t hold on to it. Buyers and sellers fought it out and ended up closing the week near the open. This is a Doji. The neutral end to the week in my view shows buyers are becoming cautious. A red candle close this week would form an Evening Star Formation. This is considered a reversal signal. If cattle takes out last week’s low at 164.40, sellers could take control. The 38.2% retracement lies in wait at 159.90 and the weekly 8 period simple moving average is at 158.6.
Please join me as I take a look at the Livestock markets on October 22, 2014. If you are not able to attend the webinar live, a recording will be sent to you if you register for the event.
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Senior Market Strategist
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Tim Hannagan, Grain Analyst for Walsh Trading, Inc. - Weekly Grain Webinar TODAY at 2:00 PM CST.
You can join Tim for his weekly look at the grain markets TODAY. Tim has more than 37 years of experience in commodity markets and is a nationally recognized expert on the grain markets. His opinions frequently appear in The Wall Street Journal, Barrons, Futures Magazine, Investors Business Daily, and other periodicals as well as international news wire services, online blogs, commodity news services and nationally televised networks.
If you are unable to attend today's webinar, it will be available on our website at www.walshtrading.com later this evening. Feel free to contact Tim at 1.888.391.7894 or via email at firstname.lastname@example.org.
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