Cattle Futures: Sideways Price Action Possible on October Contracts
US - October cattle contracts moved seven cents, down for feeders and up for live cattle, reports TheCattleSite analyst Jim Wyckoff.
16 September 2014
2 minute read
October cattle closed slightly higher $0.07 at 156.35. October cattle closed higher on Monday as it consolidated some of the decline off last week's high.
The mid-range close sets the stage for a steady opening when Tuesday's session begins trading. Stochastics and the RSI are neutral to bearish signalling that sideways to lower prices are possible near-term.
Closes below the 20-day moving average crossing at 152.60 would confirm that a double top has been posted.
If October renews the rally off August's low, July's high crossing at 160.70 is the next upside target. First resistance is last Wednesday's high crossing at 160.50.
Second resistance is July's high crossing at 160.70. First support is today's low crossing at 155.55. Second support is the 20-day moving average crossing at 152.60.
October feeder cattle closed down $0.07 at $225.85. October Feeder cattle closed lower on Monday. The low-range close sets the stage for a steady to lower opening when Tuesday's night session begins trading.
Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible near-term.
If October extends the rally off August's low into uncharted territory, upside targets will be hard to project.
Closes below the 20-day moving average crossing at 218.51 would confirm that a short-term top has been posted. First resistance is last Wednesday's high crossing at 228.20.
Second resistance is unknown. First support is the 10-day moving average crossing at 224.51. Second support is the 20-day moving average crossing at 218.51.
TheCattleSite News Desk
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