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Cattle Futures: Bulls Still Have Advantage Despite Losses, Wednesday

06 March 2014
Jim Wyckoff Commentary -  TheCropSite

US - Prices hit a fresh contract high before backing sharply off seeing April live cattle close $1.95 lower at $143.67, writes TheCattleSite analyst, Jim Wyckoff.

April live cattle closed down $1.95 at $143.67 Wednesday. Prices closed near the session low and scored a bearish “key reversal” down on the daily bar chart.

This is an early technical clue that a market top is in place. Profit taking was featured today. Cash market fundamentals remain fully bullish.

Bulls also still have the overall near-term technical advantage. Bulls’ next upside price “breakout” objective is to push and close prices above solid resistance at today’s contract high of $146.65.

The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $142.00. First resistance is seen at $144.50 and then at $145.00. First support is seen at today’s low of $143.05 and then at $142.50. Wyckoff's Market Rating: 7.0

May feeder cattle closed down $0.45 at $174.70 Wednesday. Prices hit another fresh contract high today and then reversed course to close near mid-range and score a bearish “outside day” down on the daily bar chart.

If there is good follow-through selling pressure on Thursday, then a more significantly bearish “key reversal” down on the daily bar chart would be confirmed. That would be one early technical clue that a market top is in place.

The feeder bulls do 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 today’s contract high of $176.20.

The next downside price breakout objective for the bears is to push and close prices below solid technical support at last week’s low of $172.00. First resistance is seen at $175.00 and then at $175.40. First support is seen at $174.00 and then at $173.50. Wyckoff's Market Rating: 7.5

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.

Top image via Shutterstock



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