20 June 2014

2 minute read

North America

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

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