Cattle Futures: Price Action Features 'Tepid' Short Covering, Wednesday24 April 2014
US - Live cattle are neutral to bearish, while feeders look bullish this week, reports TheCattleSite analyst, Jim Wyckoff.
June live cattle closed up $0.12 at $135.10 Wednesday. Prices closed near the session high. More tepid short covering was featured after prices hit a seven-week low on Monday.
A three-week-old downtrend is still in place on the daily bar chart. Bulls and bears are presently on a level near-term technical playing field.
Bulls’ next upside price “breakout” objective is to push and close prices above solid resistance at $136.30. The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $133.00.
First resistance is seen at $135.50 and then at this week’s high of $136.00. First support is seen at today’s low of $134.37 and then at this week’s low of $133.95. Wyckoff's Market Rating: 5.0
August feeder cattle closed up $0.17 at $182.45 Wednesday. Prices closed nearer the session high in quieter trading. Bulls have the solid 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 $185.00.
The next downside price breakout objective for the bears is to push and close prices below solid technical support at $180.00.
First resistance is seen at Tuesday’s contract high of $183.00 and then at $183.50. First support is seen at $182.00 and then at $181.50. Wyckoff's Market Rating: 8.0
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