Cattle Futures: Sideways and Higher Prices Possible Near Term, Thursday17 January 2014
US - April live cattle closed higher at $139.22, up 27 cents, reports TheCattleSite analyst Jim Wyckoff.
April cattle closed higher on Thursday as it extends the rally off November's low. The mid-range close sets the stage for a steady to higher opening when Friday's night session begins trading.
Stochastics and the RSI are overbought, diverging but are neutral to bullish signaling that sideways to higher prices are possible near-term.
If April extends the rally off November's low, upside targets will be hard to project with April trading in uncharted territory.
Closes below the 20-day moving average crossing at 136.13 would confirm that a short-term top has been posted.
First resistance is today's high crossing at 139.80. Second resistance is unknown. First support is the 10-day moving average crossing at 137.37. Second support is the 20-day moving average crossing at 136.13.
March feeder cattle closed up $0.22 at $168.25. March Feeder cattle closed higher on Thursday as it extended this week's short covering rally.
The low-range close sets the stage for a steady to lower opening when Friday's night session begins trading. Stochastics and the RSI are turning neutral signal that sideways trading is possible near-term.
Closes above last Thursday's high crossing at 169.40 are needed to renew this year's rally. If March renews the decline off last Thursday's high, the reaction low crossing at 165.45 is the next downside target.
First resistance is today's high crossing at 168.90. Second resistance is last Thursday's high crossing at 169.40.
First support is Monday's low crossing at 166.44. Second support is the reaction low crossing at 165.45.
TheCattleSite News Desk
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