April Live Cattle
The 1966 spaghetti western spun a tail of a bounty hunting scam which joins two men in an uneasy alliance against a third in a race to find a fortune in gold buried in a remote cemetery. When it comes to the April Live Cattle I’d have to express a a similar unease concerning the contracts ability to hold what I believe to a very important technical level at 114.800. The good or rather favorable scenario would be that if the cows were to stumble below the point and recover there would be multiple time frame divergence. If this were to play out one would like to see a snap back and hold above 115.500. The bad news is that currently I do not believe the structure to be overly stable to stave off another dip. I contend that the observable structure off the recent low is non-impulsive in nature. The ugly nature of the current state of the market were to be if the contract closes below 115.200 for the week. If this were to play I believe the barn door will be open for a continued wave of selling pressure that would most likely not find support until +/-110.000. In my opinion a strong close above 116.800 would change the tone.
My analytical breakdown focuses on a blend of wave pattern recognition, long and short term geometrical extensions and momentum signal interpretation. Please feel free to contact me at Walsh Trading to discuss my insights into this or any market of your interest.