FOR MONDAY: (8/27) Warm weather may cause a little short-covering on Monday but we need the crops to dry out now and the forecast for the first few weeks of September is helpful. Any bounces into Monday should set up sales. COF report was bearish but market is very oversold so we may get Cattle on Fade reaction.
TODAY’S COMMENTS: (8/27) We have hedges on and will most likely keep them until seasonal weakness is over in late September. Lower support could fall to 358.50 and 353.00. Hard to imagine another push up here coming if you have no protection on. Hard to sell this much down on the week but not going to go up much.
OVERALL: The lower daily chart pattern suggests 358 and 353. Current hourly patterns project 347.50. If we get a 1-day bounce on Monday, it still should set up another sale into Wednesday’s low. May not get much of a bounce and not clear. Usually the Gann circle of 360 holds, so a minor bounce would be healthy.
CYCLES OVERVIEW: Lower into Aug. 26; recovering Monday; lower into Wednesday.
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