May Feeder Cattle
The rally in the feeder market which commenced in the later part of 2017 seems to have completed a subset a-b-c advance. Furthermore the overall structure stemming from the fall of 2016 appears to be a complex W-X-Y-X pattern which is not yet complete. The missing leg would call for an advancing A-B-C pattern to form the final Z wave of the sequence. What we have just witnessed ,I believe, is the completed first leg ( A wave ) of that final series. I contend that we are now pulling back to form the B wave or perhaps an interior X wave. This can be tricky. Calling on other instruments and studies to isolate a potential target zone is the next step in the process. My conclusion to this point would call for a further easing to roughly 147.000 before the market turns up again. If this level can’t stabilize the retreat then a potential follow through to 145.000 may unfold. From one of these two locations ( more likely the 145.00 ) I’d be expecting a sizable advance to materialize. Overhead target level comes in at +/- 165.000.
Please feel free to contact me at Walsh Trading to discuss my analytical approach.I’d be happy to apply my process to any instrument of your concern. Thank you.
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