December Live Cattle
With a second close above the channel resistance line which convergences with the 50 day moving average at +/-112.800 is the cattle market now poised to make definitive (c) wave advance that we have been looking for since the lows established in mid-August. One must keep an eye on the front month October which to me has yet to tip it’s hand. The lead contract today has settled right on the speed- line resistance level at 107.975 and will need to establish value above here to the take the noose of the December contract. In the event that it plays out in a bullish fashion the December cattle will look to challenge the +/-114.800 2nd tier speed-line/100 day moving average level. A press above should target +/-116.500. One the other side of the coin if prices stumble below 112.400 the bullish case would be difficult to defend.
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