US - Cattle futures closed near the session high with short covering and mild bargain hunting and some chart consolidation on Wednesday, reports TheCattleSite analyst, Jim Wyckoff.
The live cattle futures bulls and bears are still on a level near-term technical playing field, says Mr Wyckoff. A two-week-old downtrend is in place on the daily bar chart.
June live cattle closed up $0.32 at $135.60.
Bulls’ next upside price “breakout” objective is to push and close prices above solid resistance at $137.00. The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $133.50.
First resistance is seen at $136.00 and then at $136.50. First support is seen at today’s low of $134.95 and then at this week’s low of $134.42. Wyckoff's Market Rating: 5.0
May feeder cattle closed up $1.35 at $180.22 Wednesday. Prices closed near the session high and closed at a fresh contract high close yesterday.
Bulls have the solid overall near-term technical advantage. Prices are in a 4.5-month-old uptrend on the daily bar chart.
The next upside price breakout objective for the feeder bulls is to push and close prices above solid technical resistance at $182.00.
The next downside price breakout objective for the bears is to push and close prices below solid technical support at this week’s low of $177.75.
First resistance is seen at the contract high of $180.25 and then at $181.00. First support is seen at $179.50 and then at $179.00. Wyckoff's Market Rating: 8.0
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.