June Live Cattle
The Texas two-step is a partner dance, consisting of a leader and a follower. This infectious little jig comes to mind as I observe the structural sequence that has played out in the June Live Cattle market. The leader in this case was the quick and robust surge off the previously identified save level (April) in last week’s action. The market then paused at the dominant acceleration line and stumbled back in a non-impulsive fashion to the lower end of hourly cloud support level at 101.200. Focusing on the subset rally off this point, which managed to advance once again to challenge the sloping resistance line, it appears that the market is poised to extend in a 1 x 1 manner ( the follower) to the next overhead target zone at roughly 108. This level also coincides with the 50% replacement off the last impulse high of 118.775. This scenario is contingent on the fact that the cows hold up above 102.700. Please feel free to contact me at Walsh Trading to discuss my further outlook in this and other multiple future markets.