Cattle Gets A Bounce After Hitting 61.8% Target

Cattle

(LEZ23) 
December

The chart below is key to this analysis.

In our last update on 11/16/23 we said this,

Use 177.30 as the swing point for the week again.

 Below it, with it already reacting to 38.2% at 177.30 ($7.00 rally) the target area is 61.8% of the same move at 168.25 and the 167.73 major Gann square. Before then there is a major Gann square at 173.22 to use as the short term target.

The break from 177.30 not only hit the short term target of the 173.22 major Gann square, but went on to complete the long term target of 61.8% at 168.25 (a few ticks shy). 

As for what to look for now we have to use the ONE44 61.8% rule,

Whenever the market holds 61.8% of a move, look for it to go 61.8% of where it just came from. This usually happens when a market is directionless, or in a consolidation period.

This gives us a long term target of 61.8% back to the contract high at 183.10. The short term target is 38.2% of the same move at 177.50. Any rally that can't get back above the 173.22 major Gann square keeps the trend extremely negative and new lows can follow.

Use 168.25 as the swing point for the week.

Below it, look for 78.6% of the contract high and low at 162.05, this is also a major Gann square for added support.

You can see another post we did for Corn on Barchart here.

(ZCZ23) 

And one for Soybeans HERE.

(ZSH24) 

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