August Feeder Cattle:
Buying on a hold of strong support and a test of the 50% retracement. The Relative Strength Index (RSI) indicator is also showing the market to be oversold at this point.
August Feeder Cattle has found a strong support level of 150.25. This is also a 50% retracement of the low of 136.00 in September and the high of 164.40 in mid-March. I look for a bit of retracement to get long this market through the remainder of the summer.
I look to get involved at this level of old resistance and now new support.
BUYING the August Feeder Cattle contract at 150.25 on a limit (Good Til Cancelled) …last trade 151.20
***You alone know your risk and reward parameters that you have set for yourself. The levels below are my ideas and strictly for informational purposes. The risk of loss in trading futures contracts or commodity options can be substantial.***
—Risk #1 would be 148.25
—Risk #2 would be 146.25
—Objective #1 would be 158.25
—Objective #2 would be 160.25
For those who prefer option trades:
Consider buying the August Feeder Cattle 158.00 call with 145 days until expiration for roughly 200 points or $1,000.00.
Risk would be the cost of the option plus fees
It may not be possible to limit losses to the exact loss limit depending upon market conditions and the possibility of limit moves.
Have a look:
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