Live Cattle futures appear to be in the initial stage of a breakout from a very large continuation Triangle chart pattern, with a retest of major resistance currently underway. This Triangle has been forming for several weeks, and is shown here on the Autochartist 240-minute time interval.

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The high degree of volatility in the Live Cattle contract early on in the development of this Triangle creates a somewhat erratic formation, lending to the average Quality reading of 4 bars. However the market has entered a narrow consolidation zone with a tight trading range as it approaches the apex of the formation, helping to shore up the technical outlook and increase the prospects of a successful upside breakout.

The breakout currently underway comes after a successful retest of support at the lower end of the pattern, which triggered a rapid reversal to the upside. If the current retest of this initial push above the resistance finds follow-through buying, the forecast projects a minimum upside target near $110.00, with an upper end of the range close to $112.00, and the substantial length of the Triangle's development suggests this may be the start of a more significant rally in the making.

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