Live Cattle futures have begun an orderly decline from the top of a Channel Up chart pattern, identified by Autochartist and illustrated here on the 240-minute time interval. This pattern suggests a steady move lower to the bottom of the pattern may ensue as the week progresses.
The Channel Up chart pattern is well formed and has so far contained the bulk of the latest uptrend in the cattle market. Strong Initial Trend and Uniformity readings give the formation an overall Quality rank of 7 bars, with several tests of resistance at the top of the channel supporting the probability of this trend continuing.
The move lower should find support for a possible reversal move once it reaches the trend line drawn at the $120.50 per hundredweight price level. A failure of this level would appear as a bearish development with anticipation of lower prices below the Channel Up pattern. A reversal from the trend line will allow for another move towards the top of the channel, with an eventual upside breakout possible. Autochartist will generate a new forecast target once a clear breakout has occurred.
For further information on this and other Autochartist products, visit our website at www.autochartist.comc