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 rnelson@allendale-inc.com.

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. www.allendale-inc.com.

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