Live Cattle futures have formed a very well-defined Head & Shoulders chart pattern, illustrated here on the 240-minute time frame. The chart has been developing this pattern since late June and provides support and resistance levels for the wide range in which this market has been trading.

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Wednesday's session carried the futures back up to the edge of resistance provided by the pattern near $113.80 per hundredweight. The price appears to be rolling over at this level, suggesting a reversal of the recent uptrend with a move back to the support at the $108.00 level.

A move above the neckline at $113.80 would initiate a technical breakout to the upside, which could have considerable room for upside gains given the duration of this Head & Shoulders formation, and traders will be watching for any buying strength coming into the market this week for setting up a possible rally. However, given overall weakness in the commodities complex on top of the current pause at resistance, expectations remain for a downward correction inside the range.

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