Tue, 28 Jan 2014
US - Price action last week produced a spike top and then prices backed off sharply. If there is some more selling pressure this week, then a major market top could be in place, writes Jim Wyckoff, TheCattleSite analyst.
April live cattle closed up $0.40 at $140.47 Monday. Prices closed nearer the session high and scored a mildly bullish "outside day" up on the daily bar chart.
But right now the live cattle futures bulls are still in technical control. Bulls' next upside price "breakout" objective is to push and close prices above solid resistance at last week's record high of $143.20.
The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at of $138.00.
First resistance is seen at today's high of $140.60 and then at $141.00. First support is seen at $140.00 and then at today's low of $139.50. Wyckoff's Market Rating: 7.0
March feeder cattle closed down $0.10 at $168.77 Monday. Prices closed near the session high and mild profit taking was featured. Prices last week hit a contract high.
The bulls still have the solid overall near-term technical advantage. The next upside price breakout objective for the feeder bulls is to push and close prices above solid technical resistance at the contract high of $170.67.
The next downside price breakout objective for the bears is to push and close prices below solid technical support at the January low of $166.40.
First resistance is seen at $169.40 and then at $169.87. First support is seen at today's low of $168.07 and then at $167.50. Wyckoff's Market Rating: 7.0