Prices Close Neat Session Lows Amid Bearish Outside Markets06 November 2013
US - The key "outside markets" were bearish for the cattle market yesterday as the U.S. dollar index was firmer and crude oil prices were lower, writes Jim Wyckoff, TheCattleSite analyst.
December live cattle closed down $0.05 at $132.05 and prices closed near the session low.
The cattle futures bulls still have the overall near-term technical advantage. Prices are in a 5.5-month-old uptrend on the daily bar chart, but just barely now. Bulls' next upside price "breakout" objective is to push and close prices above solid resistance at the October high of $134.70.
The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at the October low of $131.40. First resistance is seen at this week's high of $132.60 and then at $133.00. First support is seen at this week's low of $131.75 and then at $131.40. Wyckoff's Market Rating: 6.5
January feeder cattle closed up $1.22 at $165.07 Tuesday. Prices closed near the session low. The feeder bulls have the slight 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 last week's high of $167.20.
The next downside price breakout objective for the bears is to push and close prices below solid technical support at last week's low of $163.45. First resistance is seen at $165.50 and then at $166.00. First support is seen at $164.50 and then at $164.00. Wyckoff's Market Rating: 5.5
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.