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Cattle Futures: No Let Up In Bullish Trade, Wednesday

23 January 2014
Jim Wyckoff Commentary -  TheCropSite

US - More record highs were hit on Wednesday as markets stayed bullish, reports TheCattleSite analyst Jim Wyckoff.

April live cattle closed up $1.52 at $141.75 Wednesday. Prices closed near mid-range and hit another fresh contract high today. Nearby futures also hit another record high.

Reports of higher cash trade taking place in the central U.S. this week helped to boost the futures. This week has seen record-high boxed beef prices.

Live cattle futures bulls are in full technical control. History of commodity market prices shows that bull runs to record highs can see prices move higher than most market watchers would reckon. Bulls' next upside price "breakout" objective is to push and close prices above solid resistance at $145.00.

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 $142.00 and then at $142.50 and then at today's contract high of $143.00. First support is seen at $141.00 and then at $140.60. Wyckoff's Market Rating: 9.5

March feeder cattle closed up $2.07 at $170.40 Wednesday. Prices closed nearer the session high, scored a bullish "outside day" up on the daily bar chart and hit a new contract high.

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 $172.50.

The next downside price breakout objective for the bears is to push and close prices below solid technical support at $167.50.

First resistance is seen at today's contract high of $170.67 and then at $171.00. First support is seen at $170.00 and then at $169.40. Wyckoff's Market Rating: 8.5

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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