December live Cattle
For those off you that have been following along you would have read yesterday’s posting titled ” And the Cow Jumped Over the Moon” which pointed to the potential bullish setup as the December contract had closed above the major channel line resistance. In today’s action we witness this proposed scenario play out as the December live cattle market made an early low of 113.025 before stampeding ahead through 2nd tier resistance speed-line at +/-115 posting a limit up high of 116.400 and close just off extreme at 116.250. It appears that we are in the midst of a major (C) wave advance of an (A-B-C) rally which commenced at the lows from the fall of last years. With what I believe is a series of subset impulsive waves commencing from the low established in the middle of this month I am looking for more upside action. First level of upside contention rest at +/-117.600 and coincides with channel-line resistance in the October contract. I’d expect a reaction off this level. I believe any non-impulsive pullbacks we my see will be buying opportunities. Overhead extension projections come in at +/-120 and higher at +/-127. It is imperative that one remains open-minded in there analytical approach in order to properly digest new market information. Becoming to one-side blinds one to do so and counter evidence suggesting other outcomes only become clear after financial damage has been inflicted. I believe a close below 114.300 negates my current view.
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.