Kiss Goodbye? February Live Cattle

John Lunney General Commentary Leave a Comment

February Live Cattle   

     After opening on Monday relatively unchanged the February live cattle market tweaked out a minor new low before chopping higher to finish at 121.025 up approximately 2.7 points for the week. To me the most noticeable observation is the week’s closing location. Currently we rest just below a double come back level on the longer term price chart while the hourly landscape saw prices reach the converging resistance point. This all leads me to believe that the cattle market is hardly out of the woods especially considering the impulsive nature of the selloff from the early November highs. The inner price low of 122.650 made on November 20th becomes extremely significant as I see it. I am currently labeling this as the first wave’s price extreme. Because of the upward sloping nature of the double comeback lines the level will rise as time comes out of the structure. Early next week this location comes in between 121.8 and 122.350. Any further advance will remain suspect until the first wave low previously addressed is violated. A flash higher followed by a with a pull-back that holds below 121.20 would point to further weakness in the days ahead. On the other hand an overlap of the inner low would change my current outlook. My first downside target comes in at +/-116.000. My longer term objective comes in underneath at +/- 114.500. Please follow along with me in an attempt to stay ahead of the markets next move. 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 suggested strategies to take advantage of this and other market opportunities

My analytical breakdown focuses on a blend of wave pattern recognition, long and short term geometrical extensions and momentum signal interpretation.

 

 

 

 

 

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