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Cattle Futures: Sideways and Higher Prices Possible Near Term, Thursday

17 January 2014
Jim Wyckoff Commentary -  TheCropSite

US - April live cattle closed higher at $139.22, up 27 cents, reports TheCattleSite analyst Jim Wyckoff.

April cattle closed higher on Thursday as it extends the rally off November's low. The mid-range close sets the stage for a steady to higher opening when Friday's night session begins trading.

Stochastics and the RSI are overbought, diverging but are neutral to bullish signaling that sideways to higher prices are possible near-term.

If April extends the rally off November's low, upside targets will be hard to project with April trading in uncharted territory.

Closes below the 20-day moving average crossing at 136.13 would confirm that a short-term top has been posted.

First resistance is today's high crossing at 139.80. Second resistance is unknown. First support is the 10-day moving average crossing at 137.37. Second support is the 20-day moving average crossing at 136.13.

March feeder cattle closed up $0.22 at $168.25. March Feeder cattle closed higher on Thursday as it extended this week's short covering rally.

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 turning neutral signal that sideways trading is possible near-term.

Closes above last Thursday's high crossing at 169.40 are needed to renew this year's rally. If March renews the decline off last Thursday's high, the reaction low crossing at 165.45 is the next downside target.

First resistance is today's high crossing at 168.90. Second resistance is last Thursday's high crossing at 169.40.

First support is Monday's low crossing at 166.44. Second support is the reaction low crossing at 165.45.

TheCattleSite News Desk

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any traders and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 1. Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.



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