Live Cattle’s 240-minute time frame has consolidated into the narrowing range of a Triangle pattern. Because of the quiet, sideways range (confirmed by the three-bar Autochartist Initial Trend reading) wait for a breakout higher through 9950 (X) or breakdown lower through 9740 (Y). Currently, the MACD Histogram reading is very low and nearly flat, which sets up a move to either side of the pattern. One effective way of capitalizing on what could be strong momentum in either direction is to use a conditional order at each side of the Triangle. These come in the form of a buy stop just above the resistance level and a sell stop just below support—this would essentially “bracket” the pattern for an Autochartist Initial Movement/Momentum (AIM) entry.

Despite congestion on the 240-minute chart, Live Cattle is in an overall uptrend. If the market corrects lower, look for support between 9710 and 9650. If the bulls push higher through the Triangle pattern, on the other hand, near-term resistance waits at 9955.

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