It has been a while since I last updated Feeder Cattle, but the correction in wave 4 has dragged out much longer than first expected.
Under the Elliott Wave Principle, we would like to see alternation between wave 2 and 4, which clearly is what we have seen in Feeder Cattle. Wave 2 was a simple zig-zag correction, that corrected 61.8% of wave 1, while wave 4 was a flat that only corrected 38.2% of wave 3.
With wave 4 in place, we should now look for wave 5 lower. The ideal target-area for wave 5 is seen between 107.38 - 111.33. However, we should be aware of the long-term support-line, which currently is sitting near 129.70 as a strong hurdle on the way lower in wave 5.
Only an unexpected break back above 156.88 will revive the correction in wave 4.
Under the Elliott Wave Principle, we would like to see alternation between wave 2 and 4, which clearly is what we have seen in Feeder Cattle. Wave 2 was a simple zig-zag correction, that corrected 61.8% of wave 1, while wave 4 was a flat that only corrected 38.2% of wave 3.
With wave 4 in place, we should now look for wave 5 lower. The ideal target-area for wave 5 is seen between 107.38 - 111.33. However, we should be aware of the long-term support-line, which currently is sitting near 129.70 as a strong hurdle on the way lower in wave 5.
Only an unexpected break back above 156.88 will revive the correction in wave 4.
