US - Futures markets were bearish yesterday, both in cattle and in external commodities, reports TheCattleSite analyst, Jim Wyckoff.
December live cattle closed down $1.12 at 163.35, coinciding with sharply lower crude oil prices and a higher US dollar index.
Cattle prices closed near the session low on profit taking from recent solid gains that saw prices hit a contract high on Monday.
Cattle bulls still have the solid overall near-term technical advantage with an objective for prices above solid resistance at the contract high of $165.07.
The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $160.00. First resistance is seen at $164.00 and then at $164.50. First support is seen at $163.00 and then at $162.50. Wyckoff's Market Rating: 7.5
Tuesday's November feeder cattle closed up $0.15 at $234.65, nearer the session low after hitting another contract high early yesterday.
Prices also closed at a bullish monthly and quarterly high close. Bulls have the strong overall near-term technical advantage. A five-week-old uptrend is in place on the daily bar chart.
The next upside price objective for the feeder bulls is to push and close prices above technical resistance at $237.50. The next downside price breakout objective for the bears is to push and close prices below solid technical support at $230.00.
First resistance is seen at $235.00 and then at today’s contract high of $235.95. First support is seen at $234.00 and then at $233.00. Wyckoff's Market Rating: 9.0
TheCattleSite News Desk
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