December Live Cattle
Cattle crush refers to the strongly built cage used to hold cattle. This reflects the current state of the December live cattle market. Recently I’ve been holding steady on by bullish outlook on the market. However, it is imperative to readdress one’s opinion when the facts change. Not to do so in trading as in life can produce harrowing results. I’ve spent considerable time today breaking down smaller time frame price charts. It appears to me that there exists several alternate wave counts two of which produce bullish scenarios and the other bearish. The first positive sequence breaks down with a violation of 112.750. A break or violation of this level should produce an extended decline targeting +/-111 at the fibonacci and speed line convergence zone. One needs to carefully examine the structure of such a decline. If it exhibits impulsive qualities one must be prepared to sell any subsequent rebound which in turn should give way to another impulsive decline of equal or greater proportion. On the other hand should the selloff be non-impulsive in nature it would more than likely be a (b) extreme. This move would be followed by a 5 wave sequenced advance which would ultimately extend through the 117.725 recent high.
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 at 3pm central as I apply Elliott Wave theory to the cattle and other commodity markets.