May Feeder Cattle
The May feeders displayed some real grit in the last two sessions. After failing to hold a major technical level in last week’s final session the dogies managed keep it together at the previously identified second tier save level. This location at roughly 110.500 is a geometric convergence zone with both sloping lines dating back over a year. It also should be noted that yesterday’s low fulfilled the 1 x 1 target of what could have been an (a-b-c) non-impulsive breakdown. The market thrust up today extending the week’s ATR to 5.00 which is roughly the 14 period moving average. At 137.475 the contract rest a smidgen below a formidable resistance level at 138.600. It would not surprise to see the market ease a bit from here perhaps to 134.500. I’d be motivated to come in on the next dip and establish a long position. I do not suggest an outright futures purchase but would instead be looking to employ call options. In my opinion a fortification of 140 would set the stage for a continued advance to +/-149.
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 insights into this or any market of your interest.
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