Back on March 1st I wrote about the inverse head and shoulders pattern developing setting the stage for a big rally in Beef prices in “It’s What’s for Dinner”. At the time cattle future prices were hovering around $55/contract and the pattern’s upside target was some 45% higher at $80. I am happy to say that last week that target was hit. While it is massively overbought, there is no divergence and as such looks like it may want to make another push higher after the current pullback is complete. Anyone who followed the call should consider taking at least partial profits.
It’s important to remember pattern opportunities don’t always work out this well and when they do, it is rare they move this quickly.