May 27, 2025
Commodity Futures Weekly Newsletter- For the week of May 26th, 2025
Feeder cattle at or near a peak with new all-time highs remaining a possibility.
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A publication by the Research Team at Capital Trading Group: 800-238-2610
Livestock
Feeder Cattle Futures
Feeder Cattle at or near a peak.
Feeder Cattle Futures maintain a Bullish RSI reading above 50, at 62.85, so a new all-time high above 303.475 remains a possibility. The short-term Bulllish perspective here is complete however as we await confirmation of a peak in Wave 5.
Short-term support at 290
Trend channel Resistance for Wave 5 has now been met, just below the 305-310 target area. If any new marginal new high is needed to complete Wave 5, the 320 area, specifically 318.75, is the potential upper projection for a Wave 5 top to form. This is calculated by measuring the distance traveled in the widest part of the triangle, from 263.15 to 290. 36.85 points. When we add 36.85 to the triangle endpoint at 281.90, we get 318.75 as the projection. Again, thrusts from 4th wave triangles are terminal events and could end at any time. We can list 290 as support, as any drop below that level would take prices back into the span of the previous 4th wave triangle, indicating Wave 5 had likely peaked.
Conclusion
Support is nearby at the wave 4 triangle endpoint of 281.90. If price continues lower and we witness moves below 281.90, move to confidently Bearish expecting declines to break Trend Channel Support in Wave A of a larger A,B,C Corrective Wave after 5-waves up complete in an Impulsive Wave as per the Elliott Wave Theory model. A break below 50 in RSI or drop in prices below 290 would be a good indication that Wave 5 was finished and Wave A lower to beneath 281.90 had begun.
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Thank you!
Trading advice given in this communication, if any, is based on information taken from trades and statistical services and other sources that we believe are reliable. The author does not guarantee that such information is accurate or complete and it should not be
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