TheCattleSite.com - news, features, articles and disease information for the cattle industry

News

Wyckoff's Closing Report: Cattle Closed Lower

04 February 2014
Jim Wyckoff Commentary -  TheCropSite

US - April live cattle closed down $0.50 at $139.90 Tuesday. Prices closed nearer the session low and hit a fresh three-week low today.

Recent downside price action and a deteriorating fundamental posture in the cattle market suggest the futures market has put in a major market top.

A 2.5-month-old uptrend on the daily bar chart has been negated. Bulls' next upside price "breakout" objective is to push and close prices above solid resistance at last week's high of $141.20.

The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at of $137.50. First resistance is seen at today's high of $139.65 and then at $140.00. First support is seen at $138.50 and then at $138.00. Wyckoff's Market Rating: 5.5

March feeder cattle closed down $1.025 at $166.97 Tuesday. Prices closed near the session low and hit a fresh three-week low today.

The feeder bulls have faded but still have the 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 last week's high of $169.72.

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 $167.50 and then at $168.00. First support is seen at $166.40 and then at $166.00. Wyckoff's Market Rating: 6.0

April lean hogs closed up $0.27 at $93.12 Tuesday. Prices closed near mid-range in quieter trading, on a short-covering bounce from Monday's solid losses.

The hog market bulls have the overall near-term technical advantage. The next upside price breakout objective for the hog bulls is to push and close prices above solid chart resistance at last week's high of $94.90.

The next downside price breakout objective for the bears is pushing prices below solid technical support at $91.50. First resistance is seen at $93.75 and then at $94.25. First support is seen at this week's low of $92.80 and then at $92.25. Wyckoff's Market Rating: 6.0

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.



Our Sponsors

Partners


Seasonal Picks

Charismatic Cows and Beefcake Bulls