Cattle Futures: Modest Profit Taking, Friday21 February 2014
US - April live cattle closed seven cents lower at $141.75 on Thursday as contracts closed mid-range among quieter trades, reports Jim Wyckoff, TheCattleSite analyst.
Mild profit taking was featured. Cash market fundamentals are still overall bullish for the cattle market this week. Bulls still have the overall near-term technical advantage.
However, my bias is still that a major top is in place—or close to it. 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 this week’s high of $142.90. First support is seen at this week’s low of $141.55 and then at $141.10. Wyckoff's Market Rating: 7.0
April feeder cattle closed down $0.67 at $171.77 Thursday. More profit taking was featured after prices hit a contract high on Wednesday.
There was good follow-through selling today and a bearish “key reversal” down on the daily bar chart was confirmed.
That is an early technical clue that a market top is in place. But right now the feeder bulls 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 contract high of $173.32.
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 $172.00 and then at $172.35. First support is seen at $171.25 and then at $171.00. Wyckoff's Market Rating: 7.0
TheCattleSite News Desk
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