December Live Cattle
Today’s trading action in the December Live Cattle market saw slightly weaker prices.I believe we are in the midst of a complex 4th wave correction of a larger 5th wave extension. Elliott Wave rules of alternation state the if the first way is simple in structure than the preceding 4th wave is complex. Many of these patterns play out in an extended sideways nature. A correction in an uptrend can exhibit a slight bearish tone. I contend that this process is underway and that the market is working its way to roughly 122.500. It is possible that the move will play out faster than I think. A hold below 124.10 will get things going. In that case the move could extend to 122-121.500. As time comes out of the equation the projection price will rise in my opinion. First upside point of interest comes in at +/-126.700. This could potentially mark the spot for an X wave high which would give way to another a-b-c decline of roughly equal proportion to the first. From the ultimate low of this wave I’d be looking for another impulsive move to the upside to complete the pattern. Overhead projection zones remains at 131-133. A close above 127.300 negates this scenario.
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.
Please join me next Wednesday as I apply Wave Theory and Geometric targets levels to this and other commodity markets.