Jim Wyckoff: Bulls Have Advantage, Thursday11 October 2013
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.
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
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