Cattle Call: August Live Cattle

August Live Cattle

     I believe there are signs of a turn around in the cattle market. I am currently analyzing the nearest monthly contract and see today’s action pointing to a possible base being set for an impulsive (C) wave advance. Futures might be a bit of a risky play at this location so I’d be recommending the purchase of future dated call options. The front month will have to hold above 106 and if it does not the play is negated. The risk reward measures I believe are very favorable. Upside mid level target zone comes in at roughly 113 in the front month with secondary extension levels checking in at +/-119. As stated a close beneath 106 will not paint a pretty picture. Next level of support lies at +/-103.500.