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[/et_pb_text][et_pb_text _builder_version=”4.12.0″ _module_preset=”default” global_colors_info=”{}”]Good day traders, I want to take a look at live cattle should be ticker L, E or LC, depending on the platform you use. And we’re looking at February cattle here for a potential trade to the downside. And once again, we’ve got several areas of confluence that is backing this idea up. So first one here is using our smart seal software, we look to see that we have a bearish seasonal window starting on around 1124, which is essentially next week, carries over into the first part of December. So it’s a rather short trade about two or three weeks at 3% win rate over 12 years. So we got lots of good data here. Take a look at the chart. Let’s see what we have cooking here. So first off, we’ve got an area of structure resistance up here into this 129, half up to about the 133 area. This is the weekly chart on the left, looking at the daily chart. Over here on the right, you can see we’re trading up into that area. So we power up into this area. And then very quickly, the buying pressure became or is becoming a bit more exhausted doesn’t mean that we can’t power up to new highs. But we are watching for a potential break down here in cattle. So what I’m seeing here is a couple things this little pennant or wedge, if you will into this area. So it’s not a typical for price when we get into an area of structure for that momentum to slow down. Usually, more often than not, we’ll see that reversal, after identifying that from the longer term timeframes, but it doesn’t always happen. So we’re going to see what we’ve got here. Now the we have a large 123 top pattern. So those type of patterns, the 123, bottom 123 tops are what I like to trade when we have these types of situations. So when we trade here into the structure, I’m looking for a 123. Now this 123 is a little bit out of the ordinary because of how wide it is, I would not trade this 123 Simply because of how wide it is. I’m looking for one, two trades that are a little bit tighter. So you see with this 123 top here, 123 top here, let’s go back a little further, you can see another 123 top, so it doesn’t have to necessarily be that tight. But we certainly don’t want to trade it this wide, because basically, the trigger point below the number two is going to be our first target from these levels. So if we can make new highs, if we if these if we can take out these this price action right here. If we can take out these new highs, we’ll get a new number one, which will likely give us a tighter one to three top. And then we’ll look to trade it down to this 122 area. That is because that’s the next level structure trading level two level. Secondly, you’ll notice that it would put us right down here into 200 day moving average support which more often than not acts like a magnet anyway. So coupled with all of that, from a technical perspective, we also have this seasonality that favors the downside. If you don’t want to trade live cattle futures or live cattle futures options, you can trade the ETF co co w cow or M O ETF to track cattle and other agriculture futures[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]
