December Live Cattle
The December Live Cattle market finished the session strongly as it rose to settle just off the weeks highs at 127.300. The 126.500-127.500 level was targeted in earlier reports. Longer term speed line resistance and the Fibonacci extension level convergence zone comes in overhead at 131-133. I had suspected a measurable subset correction was due which would set the base for the next leg up. This has yet to play out. Yesterday's pullback which closed below the pitchfork median line failed to trigger any follow through. I believe we are in an extended third wave of an extended extended fifth wave of an impulsive move which commenced from the low of 106.725. Applying Fibonacci guidelines to this perceived sequence of the pattern gives us an estimation target of +/- 130. The first sign of an intermediate correction would be a trade below 125.500. Underneath support level comes in at +/-123.
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 Id be pleased to offer a free customized outlook for a product in your specific field.
Please join me next Wednesday as I apply Wave Theory and Geometric targets levels to this and other commodity markets.
John Lunney
Senior Technical Analyst
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