December Live Cattle
How would you like your steak sir? That describes the current state of the December Live Cattle market as the key technical level of 116.325 was violated in today’s session. This piercing of the 1st wave high is what I have been leaning on to assess the future price path of the cattle futures. This simple act now eliminates this recent pullback from 119.175 as being classified as a 4th wave correction and points to a more ominous development. Currently I am labeling the high extreme as a completed 5 wave advance and thus the door, I believe, is wide open for a more deeper retracement. Today’s close does rest on channel and speed-line support and a bounce here would not be out of the question. In that event I’d suggest the next opportunity would be the shorting of any non-impulsive advance. Targeted overhead resistance comes in at +/-117.700 with an intermediate point of contention at 116.750. Anchoring Fibonacci studies from the lows at roughly 106.500 while employing other geometric disciplines points to a future price deterioration to +/-112.400. Holding below 115.700 should bring in more selling.
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 my technical approach. Employing my expert skill set I’d be pleased to offer a free customized outlook for a product in your specific field.
Please join me next Wednesday as I use the wave principle to analyze the cattle and other commodity markets.