US - A bearish cattle-on-feed report has not stopped bullish fundamentals, reports Jim Wyckoff, TheCattleSite analyst.
April live cattle closed down $0.25 at $141.20 Monday. Cash cattle prices fetched up to $2.00 higher price levels late last week. Bulls still have the overall near-term technical advantage.
However, my bias is still that a major top is in place—or close to it. Bulls’ next upside price “breakout” objective is to push and close prices above solid resistance at the contract high of $143.20.
The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at the February low of $138.65.
First resistance is seen at today’s high of $142.20 and then at last week’s high of $142.90. First support is seen at $140.75 and then at $140.00. Wyckoff's Market Rating: 7.0
May feeder cattle closed down $0.10 at $172.32 Monday. Prices have backed off on profit taking after hitting contract high last week.
A bearish “key reversal” down on the daily bar chart has occurred, which is an early technical clue that a market top is in place.
But right now 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 contract high of $173.32.
The next downside price breakout objective for the bears is to push and close prices below solid technical support at $170.00. First resistance is seen at $173.00 and then at $173.50.
First support is seen at today’s low of $172.00 and then at $171.50. Wyckoff's Market Rating: 7.0
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