Pro Farmer Senior Market Analyst Rich Posson says open interest in live cattle futures rose with the recent rally to suggest new long positions were created. He says while the five-week stochastic is overbought, there is more near-term upside potential. "There is risk the first sell signal will be false," he says, noting objectives for the June contract range from $154 to just above $159.
In the live cattle futures chart below, Posson uses technical indicators such as stochastic, moving averages, trendlines as well as his business-cycle analysis:
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