December Live Cattle
The December cattle contract its claw back from the rug pull we witnessed following last Friday’s report. The question is whether this rebound is impulsive in nature or not. If the latter is true then the selloff from the recent high would be labeled a (iv) wave correction as it did not overlap into wave (i) territory at 112.750. The current advance, being a (v) wave, projects to carry prices above the 117.725 extreme targeting most likely +/-119.500 at the 1 x 1 measurement and channel line convergence level. Immediate overhead resistance comes in at 115.650 daily gap. Any ease of price from today’s close or following a test of the gap should find support around +/-114.300. If in the event the contract holds below 114.000 I’d become very suspicious. Holding beneath this area would prompt me to label the high at 117.725 an (X) wave extreme which in-turn has given birth to anther (a-b-c) decline.
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 technical approach. Employing my expert skill set I’d be pleased to offer a free customized outlook for a product in your specific field.