Cattle Futures: Could a Market Top Be in Place?

Fri, 31 Jan 2014

US - Clues are hinting that a short-term top might be in or is close, reports TheCattleSite analyst Jim Wyckoff, following Thursday's trading.

April cattle closed unchanged at 140.52. April cattle closed unchanged on Thursday and the high-range close sets the stage for a steady to higher opening when Friday's night session begins trading.

Stochastics and the RSI are neutral to bearish hinting that a short-term top might be in or is near.

Closes below the 20-day moving average crossing at 138.67 are needed to confirm that a short-term top has been posted. If April renews the rally off November's low, upside targets will be hard to project with April trading in uncharted territory.

First resistance is last Wednesday's high crossing at 143.20. Second resistance is unknown. First support is the 10-day moving average crossing at 140.32. Second support is the 20-day moving average crossing at 138.67.

March feeder cattle closed down $0.52 at $168.70. March Feeder cattle closed lower on Thursday.

The low-range close sets the stage for a steady to lower opening when Friday's night session begins trading. 

Stochastics and the RSI are neutral to bearish hinting that a short-term top might be in or is near. Closes below the reaction low crossing at 166.40 would confirm that a short-term top has been posted.

If March renews this winter's rally, upside targets will be hard to project now that March is trading in uncharted territory. First resistance is last Wednesday's high crossing at 170.67.

Second resistance is unknown. First support is the reaction low crossing at 166.44. Second support is the reaction low crossing at 165.45.