US - Cash market fundamentals have limited the upside in futures, reports TheCattleSite analyst, Jim Wyckoff.
This is even though some good short covering showed up in the futures market on Friday.
April live cattle closed down $0.22 at $140.17 on Monday as prices closed mid-range.
Bulls do have the slight near-term technical advantage. Bulls’ next upside price “breakout” objective is to push and close prices above solid resistance at $141.20.
The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at last week’s low of of $138.65.
First resistance is seen at today’s high of $140.75 and then at $141.20. First support is seen at today’s low of $139.80 and then at $139.47. Wyckoff's Market Rating: 5.5
March feeder cattle closed up $0.10 at $167.90 Monday. Prices closed near the session high 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 the January 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 $168.00 and then at $168.50. First support is seen at today’s low of $169.25 and then at last week’s low of $166.55. Wyckoff's Market Rating: 6.0
TheCattleSite News Desk
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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.