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Cattle Futures: Live and Feeder Cattle Close Down, Tuesday

18 December 2013
Jim Wyckoff Commentary -  TheCropSite

US - Contracts closed lower on Tuesday, amid choppy trade, reports Jim Wyckoff, TheCattleSite analyst.

February live cattle closed down $0.55 at $132.95 Tuesday, closing near the session low.

Bulls and bears are still on a level near-term technical playing field. However, the cash cattle market fundamentals have deteriorated a bit following last week's lower cash cattle trade.

Bulls' next upside price "breakout" objective is to push and close prices above solid resistance at the November high of $134.90.

The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at the November low of $131.27. First resistance is seen at today's high of $133.40 and then at this week's high of $133.67.

First support is seen at this week's low of $132.50 and then at last week's low of $132.12. Wyckoff's Market Rating: 5.0

January feeder cattle closed down $1.27 at $167.12 Tuesday. Prices closed near the session low on profit taking from recent gains. Prices Monday hit a seven-week high.

The feeder bulls still have the 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 the October high of $169.22, which is the contract high.

The next downside price breakout objective for the bears is to push and close prices below solid technical support at $166.00. First resistance is seen at today's high of $167.92 and then at this week's high of $168.45. First support is seen at $166.60 and then at $166.00. Wyckoff's Market Rating: 6.5

 

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.



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