Cattle Futures: August Feeders Jump the $3 Limit, Thursday02 May 2014
US - Feeder cattle prices are going to topple after a period of extension, with bearish traders looking at $186, reports TheCattleSite analyst Jim Wyckoff.
August feeder cattle closed up the $3.00 limit at $190.47 Thursday. Prices hit a contract and record high today. Bulls have the solid overall near-term technical advantage.
However, the market is way over-extended and due for at least a good corrective pullback soon. The next upside price breakout objective for the feeder bulls is to push and close prices above solid technical resistance at $192.50.
The next downside price breakout objective for the bears is to push and close prices below solid technical support at $186.00.
First resistance is seen at today’s contract high of $190.47 and then at $191.00. First support is seen at today’s low of $189.85 and then at $189.00. Wyckoff's Market Rating: 10.0
June live cattle closed up $2.05 at $139.25 Thursday. Prices closed near the session high and hit a fresh contract high today.
The bulls have the solid near-term technical advantage and gained fresh upside momentum today. Bulls’ next upside price objective is to push and close prices above solid resistance at $140.00.
The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at this week’s low of $136.50.
First resistance is seen at today’s contract high of $139.30 and then at $140.00. First support is seen at $139.00 and then at $138.50. Wyckoff's Market Rating: 8.0
TheCattleSite News Desk
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