US - Cash fundamentals are more bullish this week and the market appears close to, or already at, a major market top, writes TheCattleSite analyst Jim Wyckoff.
April live cattle closed down $0.30 at $141.82 Wednesday. Prices closed nearer the session low today after hitting a four-week high early on.
Bulls’ next upside price “breakout” objective is to push and close prices above solid resistance at the contract high of $143.20.
The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at the February low of $138.65.
First resistance is seen at last week’s high of $142.50 and then at today’s high of $142.90. First support is seen at today’s low of $141.55 and then at $141.10. Wyckoff's Market Rating: 7.0
April feeder cattle closed down $0.75 at $172.45 Wednesday. Prices hit another contract high today and then backed off to close near the session low on profit taking.
Prices today also scored a bearish “outside day” down on the daily bar chart. If there is good follow-through selling on Thursday, then a bearish “key reversal” down would be confirmed, which would be an early technical clue that a market top is in place.
But right now the feeder bulls still 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 $175.00.
The next downside price breakout objective for the bears is to push and close prices below solid technical support at $170.00.
First resistance is seen at today’s contract high of $173.32 and then at $174.00. First support is seen at $171.85 and then at $171.00. Wyckoff's Market Rating: 7.5
TheCattleSite News Desk
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