December Live Cattle
Currently I contend that the lows seen on September 22nd marked a fourth wave extreme of an five wave rally which commence at roughly 106.500. If this were the case then a we are witnessing a final fifth wave advance of the sequence which should attack and more than likely extend through the highs of 117.725 which at this time I have labeled the high of the third wave. First line of contention comes in at +/-116.900. It appears that the advance from the 112.900 has displayed impulsive qualities which points to an imminent challenge of the third wave extreme. The 1 x 1 projection level points to an extension to roughly 119.500 with the overhead channel line coming in at +/-120.500. If one were to utilize an ATR (average true range) study, assuming the week’s low is in place, then a full projection would suggest a continued advance to 117.500-119.500 depending on the calculation method. If an early rise to 116.900 would get rejected than I’d allow for a pullback to approximated 114.600 the Fibonacci and potentially a forth wave subset low. A decline which holds below +/-113.800 would be viewed as detrimental. One would have to propose that the 117.725 high marked a X wave extreme and thus suggest a further erosion of price unfolding in an (a-b-c) pattern.
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.