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Cattle Futures: Strong Gains Posted by August Contracts, Thursday

20 June 2014
Jim Wyckoff Commentary -  TheCropSite

US - August contracts jumped $2 yesterday, setting Friday up for gains, reports Jim Wyckoff, TheCattleSite analyst.

August cattle closed up $2.45 at 147.47. August cattle gapped up and closed higher on Thursday to post a new contract high.

The high-range close sets the stage for a steady to higher opening when Friday's session begins trading.

Stochastics and the RSI are diverging but are turning neutral to bullish signaling that sideways to higher prices are possible near-term. If August extends this year's rally, weekly resistance crossing at 148.65 is the next upside target.

Closes below the 20-day moving average crossing at 141.73 would confirm that a short-term top has been posted. First resistance is today's high crossing at 148.00.

Second resistance is weekly resistance crossing at 148.65. First support is the 10-day moving average crossing at 144.65. Second support is the 20-day moving average crossing at 141.73.

August feeder cattle closed up $2.70 at $207.55. August Feeder cattle closed sharply higher on Thursday ending a two-day correction.

The high-range close sets the stage for a steady to higher opening when Friday's night session begins trading. Stochastics and the RSI are neutral to bearish signaling that a short-term top might be in or is near.

Closes below the 20-day moving average crossing at 201.04 would confirm that a short-term top has been posted. If August renews this year's rally into uncharted territory, upside targets will be hard to project.

First resistance is Tuesday's high crossing at 210.00. Second resistance is unknown. First support is the 10-day moving average crossing at 205.50. Second support is the 20-day moving average crossing at 201.04.

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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