December Live Cattle
The December live cattle market is bumping up against resistance on a down sloping upper channel line which has so far contained the what appears to be a non-impulsive correction stemming from the high established in early June. I currently have labeled this downtrend an (a-b-c) structure which terminated at the lows seen in mid August of 106.725. This in turn should give way to an impulsive advance. Underneath support comes in at +/-111 the speed line and (iv) wave subset low convergence level. This should set base for any pullback we may see off this resistance level. Conversely if the market is able to fortify 113.700 it will most likely extend to +/-115.500. A breach here will target overhead extension target at +/- 121.500.
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