October Live Cattle
I really thought the picture would get a lot clearer after today’s session. Instead, however, the cattle market fails to impress or disappoint as today’s action leaves the October contract basically unchanged. Prices do manage to post a modest shadow low at 104.950 and climb back above the previously mentioned 106 level to fend off the matador for a day. It must be stated that the December contract appears much more stable as the recent retracement was not as alarmingly deep. Based on wave theory one could still label today’s test of the lows in the as a wave (ii) decline which is what I was previously calling for. This in turn would give way to a third wave impulsive advance. I’m not terribly comfortable doing this. Not to leave you sitting on the edge of your seats again but for now I’d have to see a rise above 107.800 to be persuaded. If, on the other hand , prices were to fall below 105.400 I’d be looking for a follow through to roughly 102.800. On the upside a close above 110 would set the ground for a rise to +/-115. In that event the recent lows of last week would be label a (B) wave extreme and thus put us in the midst of a (C) wave advancement which would carry us above the June highs of this year.
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.