Bulls Lose Advantage, Market Top in Place, Wednesday
US - Prices recovered to near the session high yesterday after hitting a two month low early in the day, writes Jim Wyckoff, TheCattleSite analyst.February live cattle closed up $0.27 at $131.95 as short covering featured.
The cattle futures bulls have lost their overall near-term technical advantage, to suggest that a major market top is now in place. Bulls' next upside price "breakout" objective is to push and close prices above solid resistance at last week's high of $134.90.
The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at the September low of $129.85. First resistance is seen at today's high of $132.20 and then at $132.72. First support is seen at $131.65 and then at today's low of $131.27. Wyckoff's Market Rating: 5.0
January feeder cattle closed up $0.35 at $162.75 Wednesday. Prices closed near mid-range and saw short covering. Prices Tuesday hit a two-month low.
Serious chart damage has been inflicted this week to suggest prices will continue to trend sideways to lower in the near term.
A six-week-old downtrend is in place on the daily bar chart. The feeder bears have the 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 the November high of $166.00. The next downside price breakout objective for the bears is to push and close prices below solid technical support at $160.00.
First resistance is seen at today's high of $163.05 and then at $163.67. First support is seen at this week's low of $162.50 and then at $162.00. Wyckoff's Market Rating: 4.0
TheCattleSite News Desk
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