October Live Cattle
Another uninspiring session unfolds in the October live cattle contract as the market once again closes below the 106 level at 104.700. I am still proposing that the market get nudged lower here and am not looking for anything dramatic based on the divergence of momentum and the underneath channel line support. A failure below 104.400 has the market following through to targeted 102.500-101.500 zone support. We’ll have to wait and see but I’d expect this level to put up a fight. If a hard low were to be established and the market were able to claw back into positive territory I’d consider this an early sign that the (a-b-c) corrective structure in place has just about run its course. In the following sessions the bulls will have to fortify the 106.500 level to get anything going on the upside.
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Please join me next Wednesday afternoon as I’ll be presenting a more in-depth Elliott Wave analysis of the grain and live stock markets.