December Live Cattle
Re-ride is a rodeo term referring to when a cowboy gets another ride because the bull refused to buck. This describes today’s market action as we saw prices fail to move with conviction in any direction as they opened and closed at the same price to finish basically unchanged for the day. One point of interest is the fact that the market rose to close the daily window at 115.650 before backing off in the final minutes forming what is called a doji candle. This particular formation has the potential to turn back this recent rebound from the inner lows of 113.100 seen earlier this week. First line support comes in at +/-114.700. A violation here should follow through to second speed line and .618 Fibonacci support convergence zone between at 114.200-113.800. This also coincides with the daily throw back support location. This is the level where the battle will be staged in my opinion. If it is a subset wave (ii) decline of a larger (v) wave pattern then it should turn up from here commencing a subset (iii) wave which would challenge the recent 117.725 extreme. In my eyes a failure or close below 113.700 negates this scenario. This would leave the door open for further losses as the market unwinds in another (a-b-c) sequence.