February Live Cattle
After taking it on the chin in the final session of last week the market was left vulnerable for a follow thru. Today prices came under early pressure opening lower at 121.45 and quickly posting an extreme to 120.825. The contract did manage to claw it’s way into positive territory before stumbling to the lower end of the trading range in mid afternoon activity. Prices closed at 121.175 down .800 for the day. To me it seems the market is poised to trade lower. The 1 x 1 measurement comes in at +/- 117.500 which converges with the .618 retracement level. Lower projection confluence level checks in at roughly 114. Currently prices are just above near term support at +/- 119.750. A reaction here should be expected. I’d be on the lookout to short any choppy rebound up to +/- 123 should the opportunity present itself. Prices should be hard pressed to rise above inside low at 123.600.
My analytical breakdown focuses on a blend of wave pattern recognition, long and short term geometrical extensions and momentum signal interpretation.
Please join me next Tuesday as I apply Wave Theory and Geometric targets levels to this and other commodity markets.