April Live Cattle
” Cold as a wagon tire” is a western slang meaning dead. In today’s trading session the market failed to establish any sort of conviction as it finished slightly lower to 112.100. If they call that an attempt to prove their stability by withstanding any continued selling pressure I remain unimpressed. As touched upon in yesterday’s posting the market is displaying multi-time frame momentum divergence. I cannot, however, isolate any meaningful support until +/- 110.500 and divergence without location to me is useless. If we were to test and hold that area while still displaying the same diverging qualities that would paint a totally different picture. Projecting the weekly ATR reading from Monday’s opening would further more suggest a test of the previously identified support level. A full extension would call for 109.300. If on the other hand the cows managed to fortify the 113.00 level they’ll probably have enough gusto to take a run at +/-114.700. This is a tough spot and I’d expect any advance to get rejected. On a larger landscape a failure to stave off a close below 110 will not look good. The daily sloping channel line does not come in until 104-103.
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 insights into this or any market of your interest.
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