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Cattle Futures: Markets To Move Higher and Sideways, Thursday

14 February 2014
Jim Wyckoff Commentary -  TheCropSite

US - Market signals suggest sideways and higher prices are possible in the near term for both live and feeder contracts, reports Jim Wyckoff TheCattleSite analyst.

April cattle closed up $1.62 at 142.40. April cattle closed higher on Thursday as it extends the rally off February's low. The high-range close sets the stage for a steady to higher opening when Friday's night session begins trading.

If April extends the rally off February's low, January's high crossing at 143.20 is the next upside target. Closes below the 10-day moving average crossing at 140.18 would confirm that a short-term top has been posted.

First resistance is today's high crossing at 142.50. Second resistance is January's high crossing at 143.20. First support is the 10-day moving average crossing at 140.18. Second support is the January 15th gap crossing at 138.05.

March feeder cattle closed up $2.23 at $170.72. March Feeder cattle gapped up and closed higher on Thursday and spiked above January's high crossing at 170.67. The high-range close sets the stage for a steady to higher opening when Friday's night session begins trading.

If March extends today's rally into uncharted territory, upside targets will be hard to project.

Closes below the 10- day moving average crossing at 168.20 would confirm that a short-term top has been posted.

First resistance is today's high crossing at 170.75. Second resistance is unknown. First support is today's gap crossing at 169.00. Second support is the 10-day moving average crossing at 168.20.

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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