December Live Cattle
Well it looked favorable in early action as the December live cattle contract opened higher at 113.050 and pressed up above the channel line to post a high 113.925 before getting rudely turned back. Prices subsequently get rejected through open turning negative on the session as they retreat below the dominant channel resistance. The contract continued it decent holding up at speed line support and Fibonacci convergence level of 111.425 and rising slightly off low to finish at 111.775. This rather harsh rejection caught me by surprise and the market is on the defensive and needs to fight off further follow through to the downside. A slip below 111.500 won’t look healthy and I’d be expecting an extension to the 110.600 -110.300 zone support. This also coincides with the .786 retracementt level anchored from the inner potential 2nd wave extreme of 109.175. This area would have to hold to keep structure together and give the market any chance of regaining it’s footing. Overhead resistance comes in at 112.800. A close above 113 puts market in rally mode for an intermediate 3rd wave advance.
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.