Thu, 30 Jan 2014
US - If there is some more selling pressure late this week, then a major market top could be in place, writes Jim Wyckoff for TheCattleSite.
But right now the live cattle futures bulls are still in technical control.
April live cattle closed up $0.17 at $140.52 Wednesday. Prices closed nearer the session high. Price action last week produced a spike top and then prices backed off sharply.
A 2.5-month-old uptrend remains in place on the daily bar chart. 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 $140.75 and then at $141.00. First support is seen at $140.00 and then at this week's low of $139.50. Wyckoff's Market Rating: 6.5
March feeder cattle closed up $0.85 at $169.22 Wednesday. Prices closed near the session high and scored a bullish "outside day" up on the daily bar chart today. The bulls 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 $170.00. First support is seen at $168.50 and then at $168.00. Wyckoff's Market Rating: 7.5