December Live Cattle
The December live Cattle market is close to a targeted extension level of roughly 126. Prices topped out today at 125.900 and a reaction off this point would not be out of the question. As of now I do not observe any momentum divergence and perhaps a minor new high will produce this. If so I’d be expecting a moderate correction to unfold. This should be non-impulsive in nature. My targeted support zone comes in between 122.200-121.200. The structure to me does not seem complete and points to another leg up for what may be the final sequence of the advance from 106.725. There is seldom any glory in attempting to pick a top or bottom and is best in my opinion to wait for the structural evidence needed. There overhead extension lines rise as time passes. Coming off any retracement that might occur,depending on its duration, would suggest an ultimate advance to 127.500-128.500 with the overhead channel high coming in at +/-129.500.
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