Live Cattle Dec Futures daily chart looking Bearish. Here's what I see:
Lower highs, lower lows last 2 swing cycles.
Negative Stochastics Diversion.
Trend Line Break Out.
2 Bearish Harami candle pattern's.
Bearish Left/Right Combo candle pattern.
Close below 8ema with continuation.
Doji sandwich candle pattern.
Close below 50sma.
Possible Bollinger Band/Keltner Channel Break Out.
Stochastics are mid-range; more room to run to the downside.
Last 3 candles are relatively high volume.
Short from 110.20 13:57 ET.
1st Target 200sma=78.6% yellow range Fib=108.75
2nd Target 161.8% yellow range Fib=161.8% green range Fib=103.35
Stop 111.60; above high of 2nd candle back. Probably above 8ema.
Risk: 110.20-111.60=-1.40*$400/pt=$560
Reward: 110.20-108.75=1.45*$400/pt=$580
R:R 1:1 Not great but this is a high probability setup, plus there is a possibility for a 2nd target.
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