August Feeder Cattle
I have spent some time studying the longer dominant time-frame charts in the August feeders. The style of top down analysis calls for this to be the first step in the process. From here one would address each smaller time-frame, namely the Daily, 240 minute and hourly. What is interesting to me is that they all point to a similar conclusion being that moderately higher prices are on the near term horizon. In the dominant time-frames (weekly/daily) it does appear to me that the two year decline was a five wave pattern and I believe a rather substantial rebound is in the cards. The question is if the rally from the October 2016 is a completed first wave of an (A-B-C) pattern. I contend that it is and furthermore that any advance will ultimately be turned back. This rejection should send prices lower to complete the subset c wave of and (a-b-c) B wave decline. This can be tricky. My upside target for the near term advance I see playing out is +/-158-159. The rejection, I believe, will press the feeders to +/-144. From here I’d be expecting a sizable rally to complete the sequence. This should extend though the front month highs seen in the fall of 2017. Should the market fail sooner than I think a violation of 150 would be the first clue. In this event the projection for the downside would be slightly lower and subsequently followed by the previously suggested advance. Please feel free to contact me at Walsh Trading to discuss both futures and suggested options strategy to take advantage of this scenario. # 312-957-8108
Also, I invite you to join me next week for my 10th webinar discussing and applying my theories to this and other futures markets.