Are new all time highs coming in Cattle? If so, when?

Market Pulse: July 30

Last week October 2012 Live Cattle opened at $123.000 and closed the week at $125.275. In August 2012 Feeder Cattle opened at $136.325 and closed the week at $137.750. 

Looking at the daily chart of live cattle you can see the large move up this past Friday. With ADX at 22.6 this is a weak trending market, but we see DI+ rising above DI-. MACD is bullish with increased divergence up off the signal line and MACD is moving further up away from the zero line on the histogram. Currently, Stochastics are nicely tucked into overbought territory. Watch for a possible correction off of $126.000, which is where the market is trading today. A close above $126.000 live cattle could retest $127.000.

On the daily Feeder Cattle chart you see ADX dropping from near 80 reflecting and extremely strong trend down which started mid June highlighted by the red TS Analyzer set-up. ADX is currently at 51 and still dropping. Keep a third eye on DI+ and DI-. Watch for the DI Differential to hit zero. MACD has dropped all divergence from below the signal line and is at this time crossing up of the signal line. Stochastics have corrected from oversold territory on the price action of the last few days.

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