December Live Cattle
The December Live Cattle market traded in an uninspiring tight range today. Prices dipped to 122.000 in early action posting a modestly new weekly low at the upper end of the targeted support level. During the rest of the session a narrowing price action developed as it rode the rising pitchfork line to finish at 122.475. I had been previously looking for a corrective decline to a measurable Fibonacci retracement point anchored from the inner low of 114.525 to the most recent high. We currently have pulled back slightly lower than the .382 level. The converging nature of today’s trading could be categorized as a triangle pattern. Most of these tend to move out of the structure the same way they came into it. This would suggest a violation of the 122 low. Underneath support convergence zone comes in just below between 122.625 and 122.150. This also lines up with the daily gap price. I’d like to see multi time-frame divergence in the momentum indicators at this level. There exist the possibility that this subset triangle represents a “b” wave. This would imply a “c” wave advance. Above 122.600 gets things going. The market will have to deal with overhead speed-line resistance at +/-123.200. A fortification of this level will look to extend. First projection target rests at +/-124.400. Cross zone upside level comes in at +/-125.200.
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.