The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
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April Live Cattle
The cattle market from a charting perspective can be quite tricky. One who attempts to apply technical analysis must contend with the price gaps that occur in using the nearest contract (continuation) price charts which most likely represent the cash market. Currently it is my that believe that a weekly close below 126 won’t look healthy. This would open the door for further selling pressure. In this event the market could follow through to roughly 114.5-114. This area should put up a good fight. From here I’d expect the market to stage perhaps another sustainable advance. Look for the end of April to early May for the contract to stabilize. However, a close below (weekly) 112.5 negates this scenario. I am currently projecting another leg higher which will have to first contend with the 130 level. I’d expect some pressure. My second level target comes in at /-144. Overhead extension fore early to mid fall checks in at /- 158.
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 insights into this or any market of your interest.
Senior Technical Analyst
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