Jim Wyckoff: Bulls Have Advantage, Thursday
US - December live cattle closed up $0.22 at $132.17 at Thursday's close. Prices closed near mid-range, writes Jim Wyckoff, Cattle and Beefsite futures analyst.
11 October 2013
2 minute read
Not much new, especially with no USDA market news. Good U.S. consumer demand and bullish cash market fundamentals continue to support the cattle futures market.
The cattle futures bulls have the solid near-term technical advantage. Prices are in a nearly five-month-old uptrend on the daily bar chart. Bulls' next upside price "breakout" objective is to push and close prices above solid resistance at $134.00.
The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $130.85. First resistance is seen at last week's high of $132.60 and then at $133.00. First support is seen at this week's low of $131.70 and then at last week's low of $131.440.
Wyckoff's Market Rating: 7.5
November feeder cattle closed up $1.55 at $167.92 Thursday. Prices closed near the session high and hit another fresh contract high. The nearby October feeder cattle futures contract hit a new record high today.
The feeder bulls have the solid overall 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 $170.00.
The next downside price breakout objective for the bears is to push and close prices below solid technical support at $164.00. First resistance is seen at today's contract high of $168.05 and then at $169.00. First support is seen at today's low of $166.97 and then at $166.50.
Wyckoff's Market Rating: 9.0
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.
