This commodity has been trending since 2020, and recently made a new high just after a moderate pullback. It is going up in a straight line, currently hovering around resistance/support, the MA100 started pointing up and the price made a bullish pattern.
The target for such a pattern is approximately the size of the pole which brings us to about 210. With cattle there are no Elliott Waves it just does whatever it wants. Because it is trending so strongly the risk to reward is something ridiculous. And it could certaintly keep going up and up and up.
If you look at the all time chart you will notice LE has not trended like this ever. Something is going on. Bubble time.
The US cattle inventory is the smallest in 73 years, that plus inflation means the price logically should be the highest ever. People are addicted to macdonald's and are not going to give up their burgers, the Biden adminitration is going to have to do something I don't care what as long as it makes me money. fb.org/market-intel/u-s-cattle-inventory-smallest-in-73-years
Watch up expiry is in a few days, it might be a good idea to wait, also we are a bit early in the triangle pattern (but it feels like it could mega-break anytime). If you trade this make sure to use guaranteed stop or another good form of risk management, it often gaps alot. With a certain broker that has guaranteed stop the minimum risk you can take is $400 so this is not for everyone, depends on your broker.
I believe this is absolutely worth taking a 1% risk, and adding to it if it becomes a big winner.
Order cancelled
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Good thing I waited for expiry 🥵 Still want to buy but I'm waiting for a new entry, not sure where to buy yet. Perhaps on an ABC or 61.8%. This is what I am using : fxcm.com/markets/trading-details/cfd-expirations/
Trade active
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I have no idea if the price goes up, it may. Maybe it's already priced in, maybe it drops before going up.
I feel I'll probably lose but if I win I win much more. What I am interested in is risk to reward.
Price with my broker dropped way below the CME price so I'll abuse that. It's like cheating (legally). Here is my entry. A mix of arbitrage and speculating. That's a huge edge in my opinion, as silly as it may seem. Free risk 🤑.
Stop around 179 bought at 181.9 (while 186.8 in CME).
Trade closed: stop reached
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Quick loss. At least it's not stagnating like all of my other positions.
@TradingView thank you for choosing this. Everyone is so focused on tech and bitcoin they’ll probably miss commodities again. Great reminder, better check grain futures again lol
MrRenev
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@panickyBus94558 I agree I went short soybean, at resistance now in a big downtrend with no major support before 900. The reason for going down is the same as for cattle going up, small number of beef to eat the beans.
@MrRenev interesting to note the EU sanctions on grains from Russia today. Time to keep an eye on wheat, as well
AnthonyCee
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Texas has been burning up in flames for weeks now and Over 1M acres have been torched. It’s virtually all cattle country and the farms that are built there. This is no surprise and at the end of the day, this does not represent authentic buyer interest and upside sustainability. Make your money now and secure profits as soon as they are available
molbioinfo
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@mrRenew, if the bullish pattern you mean is the one drawn as an ascending wedge, note that the ascending wedges are bearish, not bullish.
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