US - Market signals suggest sideways and higher prices are possible in the near term for both live and feeder contracts, reports Jim Wyckoff TheCattleSite analyst.
April cattle closed up $1.62 at 142.40. April cattle closed higher on Thursday as it extends the rally off February's low. The high-range close sets the stage for a steady to higher opening when Friday's night session begins trading.
If April extends the rally off February's low, January's high crossing at 143.20 is the next upside target. Closes below the 10-day moving average crossing at 140.18 would confirm that a short-term top has been posted.
First resistance is today's high crossing at 142.50. Second resistance is January's high crossing at 143.20. First support is the 10-day moving average crossing at 140.18. Second support is the January 15th gap crossing at 138.05.
March feeder cattle closed up $2.23 at $170.72. March Feeder cattle gapped up and closed higher on Thursday and spiked above January's high crossing at 170.67. The high-range close sets the stage for a steady to higher opening when Friday's night session begins trading.
If March extends today's rally into uncharted territory, upside targets will be hard to project.
Closes below the 10- day moving average crossing at 168.20 would confirm that a short-term top has been posted.
First resistance is today's high crossing at 170.75. Second resistance is unknown. First support is today's gap crossing at 169.00. Second support is the 10-day moving average crossing at 168.20.
TheCattleSite News Desk
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