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Cattle Futures: No Gains For April Contracts, Monday

04 March 2014
Jim Wyckoff Commentary -  TheCropSite

US - April cattle contracts closed lower with feeder unchanged at $173.03 on Monday, according to TheCattleSite analyst, Jim Wyckoff.

April cattle closed down $0.85 at 144.12. April cattle closed lower on Monday. The low-range close sets the stage for a steady to lower opening when Tuesday's session begins trading.

Stochastics and the RSI are overbought and are turning neutral to bearish hinting that a short-term top might be in or is near.

Closes below the 20-day moving average crossing at 141.57 would confirm that a short-term top has been posted. If April extends this winter's rally, upside targets will be hard to project if it trades into uncharted territory. First resistance is last Thursday's high crossing at 145.97.

Second resistance is unknown. First support is the 10-day moving average crossing at 142.89. Second support is the 20-day moving average crossing at 141.57.

April feeder cattle closed unchanged at $173.07. The high-range close sets the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI are turning neutral to bearish signaling that a short-term top might be in or is near.

Closes below the 20-day moving average crossing at 170.84 would confirm that a short-term top has been posted.

If April extends this month's rally into uncharted territory, upside targets will be hard to project. First resistance is last Thursday's high crossing at 174.70.

Second resistance is unknown. First support is the 10-day moving average crossing at 172.62. Second support is the 20-day moving average crossing at 170.84.

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.



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