December Live Cattle
Prices extended to the upside in end of the week action finishing the week in belt -hold fashion, as described in candle stick theory, by opening on the lows and closing on the highs. The weekly range reached above the ATR readings of 4.5 to 5.2 as discussed in Thursday’s post. Today’s high also closed a daily window of 117.72.5 (gap) which was our overhead near term target. It appears that any upside action will generate lower time-frame momentum divergence. Immediate overhead resistance comes in at +/-118.500. In the event that this area is tested I’d expect a reaction off this level as the sellers attempt to turn back this advance Any pullback we witness either from closing prices or higher will most likely be non- impulsive in nature and should produce another buying opportunity. Structural evidence suggest a series of impulsive waves stemming from the lows seen in mid-September and the series is not yet complete in my opinion. Whether the market stumbles out of the gate or comes off the projected near term resistance it will find first level support at +/-115.500. A press above 118.500 targets +/-119.500. looking forward, extreme over-head projections come in at +/-127.
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