April Live Cattle
Back in the day hunters herded and drove bison over a cliff. The Blackfoot Indians called this method “pishkun”, which loosely translate as “deep blood kettle”. To me it would seem appropriate to use this term to describe what took place in the cattle market at the end of last week when it failed to hold above the technical cliff ledge at 114.900. This level market a major support convergence zone on the weekly price chart. As I wrote last week a failure here looked fairly bleak. I currently to not see any support to +/- 110.400. The only thing the market has going for it , from a technical level, is the observable multi-time frame momentum divergence. However, without an isolated support zone this is meaningless as far as I am concerned. I believe we will test the 110.400 level in the sessions to come. As far as tomorrow’s session is concerned, the futures will have to fortify the 114.000 level to gain any footing. If it was to do this a likely test of 115.300 would be in the cards. I’d expect a reaction off this level. A failure to hold the previously defined 110.400 level would leave the door open for further downside pressure. Please follow along with me in my attempt to stay one step ahead in this and other futures markets
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 insights into this or any market of your interest.