From the November 01, 2009 issue of Futures Magazine • Subscribe!

Tech talk: Cattle head and shoulders above the rest

The weekly cattle chart has been building a major base for nearly one year. The recent low at 82 correlated with a spike in volume that suggests ownership shifted from weak hands to stronger hands. Unless this low is taken out, the stronger holders of futures will be in a fiscal position to begin adding to positions and driving the trend of the market. The head and shoulders formation has a distinct pattern that upon a weekly close above neckline, will project a move towards 96.65. Traders wanting to enter this market should do so on a test of support at 84-82 or on a close above the neckline.

Rich Nelson is Director of Research for Allendale Inc. He can be reached at

About the Author
Rich Nelson

Rich Nelson is Director of Research at Allendale, Inc. in McHenry, IL. Allendale is registered with the CFTC and NFA and is a member of the NIBA.

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