Feeder Cattle - Wave A is finally coming to an end near 130.78
Feeder Cattle is one of the more odd commodities I track from time to time. Way back in October 2014 I called the top near 244.80 (you can see that post by clicking here). In that same post, I call for a long term downside target at 131.53, well we will likely overshoot this target by a small fraction as the low is expected to be seen near 130.78.
As wave A is coming to an end, with an ending diagonal as wave v of A, we should be looking for wave B higher, with the first target to look for being the origin of the ending diagonal at 169.58. However, looking out further, I expect wave B likely will move higher towards 187.80 and possibly even higher to 201.25 before turning lower again in wave C.
The clear divergence seen at the RSI indicator, does confirm that an important bottom is close by.
Just a final word of caution. Remember that correction in the commodity complex often are extremely violent.
This is a perfect example of the power of Elliott Wave Analysis. First spotting the top almost to perfection and then the bottom of first impulsive wave lower. To enjoy more calls like this, join the EWS as a member and be ahead of the rest.
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