Top was 1.56 and now we are retracing the recent drop to 1.46. We are either going head-and-shoulders here or double top. No way these prices will be supported forever....demand must drop.
Personally, I'm looking for a short as soon as this rally exhausts itself. I was supposed to have gone long the rally but took my eyes off of it but I think the short is gonna be the better opportunity.
The only thing that could derail the short idea is a huge move up in the equity markets.....making everyone get into that "risk off" mentality. Commodities will float right up on top of the bubble with stocks.
No short signal whatsoever on live cattle but I did go long yesterday because the market is showing good strength.
Yep, that last pullback was bot with ferocity......the chart is painting a classic Elliott 5 Wave thrust....we are in the 5th (last) wave. If the economy weakens and consumer discretionary income declines, this could end quickly.