December Live Cattle
The December Live Cattle market drifted lower in early week action to finish off 1.975 at 125.325. The three candle daily structure displays an evening star pattern with bearish implications. I currently believe that the run from the inner lows of 112.900 represents an extended 5th. This sequence should unfold in five wave. The evidence would suggest the first, second and third are complete. Therefore, I would contend we are looking at a fourth wave correction playing out. A hold below 125.600 leans on contract. First line support comes in at 124.500. A violation here should lead to more weakness. My target price for the low of this move comes at +/- 122. From here I’d expect the fifth and final advancing leg to develop. The overhead target zone comes in at 131-133.
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