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Cattle Futures: Bulls to Aim For $139.85

23 May 2014
Jim Wyckoff Commentary -  TheCropSite

US - Next up for the live cattle contracts is for Bulls to push above solid resistance at the contract high of $139.85, writes TheCattleSite analyst, Jim Wyckoff.

June live cattle closed down $0.475 at $137.80 Thursday. Prices closed nearer the session low today and saw more profit more taking from recent gains.

The bulls still have the overall near-term technical advantage. More selling pressure Friday would begin to suggest a bearish double-top reversal pattern has formed on the daily bar chart.

The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at the May low of $136.75.

First resistance is seen at today’s high of $138.40 and then at $139.05. First support is seen at today’s low of $137.60 and then at $137.00. Wyckoff's Market Rating: 7.0

August feeder cattle closed down $0.52 at $196.00 Thursday. Bulls still have the solid overall near-term technical advantage. Prices are in a four-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 $198.00.

The next downside price breakout objective for the bears is to push and close prices below solid technical support at $193.47.

First resistance is seen at $197.25 and then at the contract high of $197.75. First support is seen at $195.00 and then at $194.00. 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.



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