OCTOBER LIVE CATTLE
On the weekly and daily charts we have closed below the speed line support. Although I have believed that the recent selloff is close to a termination point it is difficult to suggest a long position with the facts being what they are. It must be stated there is strong bullish divergence in the daily time frame ,however, I feel it is no time to jump into the deep end of the pool. It would be far more prudent to let the market close above 108 before making a monetary commitment. Seeing that there exist an extremely favorable risk/reward scenario waiting for confirmation does not severely dampen the payoff. If we are close to a (B) low the implications would be for a sizable impulsive (C) wave advance. Above 110 targets +/-116 with full extension levels coming in above 123. That being said a continued hold below 106 threatens to open the door for further declines. First downside support checks in at +/- 102. A potential risk exist for an unwinding to +/-99.
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.