October Live Cattle
Yesterday I posted a recommendation to purchase upside calls in the cattle market. However, the October contract turned south and closed below the speed-line support level which puts the whole setup on hold. The divergence reading are still in place on multiple time frame charts and if we stumble to another new low they should still be in place. If market holds beneath 106.500 I’d be expecting a press to roughly 103.700. Currently the market has held the 50% retracement level from the lows established in the fall of 2016. If the market can’t stabilize it will be vulnerable to extend to next measurable support location which comes in at +/-100. This where disciple comes into place. By always establishing the location where the analysis breaks down one will be in a better position to digest new information with an unbiased mind set. Tomorrows and Friday’s price action should go a long way in pointing to the next most probable move the market will embark on.
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.