wmeubank@ocp.kcmo.com
COMMODITY REVIEW AND OUTLOOK
195 Route 6A, Suite 6, Orleans, Massachusetts
(October 10, 1997) CATTLE: SHORT TERM–Short-covering and ideas that cash is firming are helping the cattle reverse the recent downtrend. There is continued talk that deliveries will be light against the October contract, which may provide support.
RESISTANCE–Resistance basis December lies near 6700, 6780, 6825, 6850-6875. 6890, 6930 or so.
SUPPORT–Support basis December lies near 6600, 6550- 6525.
RECOMMENDATION–Aggressive traders might consider buying the December cattle on breaks of 25-50 points with 50-100 point stops. Look for a test of the 6770's, with the potential for another 50-100 points higher. Traders should take profits in that area with the idea of re-entering on a pullback. Option traders might buy December calls. April cattle should be bought at current levels for the long haul. Use stops of 100-200 points.
M. Steven Morgan
Added to the WWW 10-10-97
Last updated on 10-11-97
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