US - Heavy profit taking featured in Thursday's cattle futures and fresh contract highs indicate a market top is in place, reports Jim Wyckoff TheCattleSite analyst.
But right now the bulls still have the overall near-term technical advantage, writes Mr Wyckoff.
June live cattle closed down $2.27 at $136.00 Thursday. Prices closed near the session low and scored a big and bearish “outside day” down on the daily bar chart, which is also a bearish “key reversal” down.
Prices early on today poked to a fresh contract high.
Bulls’ next upside price “breakout” objective is to push and close prices above solid resistance at today’s contract high of $138.75.
The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $134.00. First resistance is seen at $136.50 and then at $137.00. First support is seen at today’s low of $136.00 and then at $135.50. Wyckoff's Market Rating: 6.5
May feeder cattle closed down $2.40 at $176.17 Thursday. Prices backed way off on profit taking. Follow-through selling pressure on Friday would begin to suggest 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 $178.85.
The next downside price breakout objective for the bears is to push and close prices below solid technical support at $174.00. First resistance is seen at $177.00 and then at $177.50. First support is seen at $176.00 and then at $175.50. Wyckoff's Market Rating: 6.5
TheCattleSite News Desk
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