US - Prices hit a fresh contract high before backing sharply off seeing April live cattle close $1.95 lower at $143.67, writes TheCattleSite analyst, Jim Wyckoff.
April live cattle closed down $1.95 at $143.67 Wednesday. Prices closed near the session low and scored a bearish “key reversal” down on the daily bar chart.
This is an early technical clue that a market top is in place. Profit taking was featured today. Cash market fundamentals remain fully bullish.
Bulls also still have the overall near-term technical advantage. Bulls’ next upside price “breakout” objective is to push and close prices above solid resistance at today’s contract high of $146.65.
The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $142.00. First resistance is seen at $144.50 and then at $145.00. First support is seen at today’s low of $143.05 and then at $142.50. Wyckoff's Market Rating: 7.0
May feeder cattle closed down $0.45 at $174.70 Wednesday. Prices hit another fresh contract high today and then reversed course to close near mid-range and score a bearish “outside day” down on the daily bar chart.
If there is good follow-through selling pressure on Thursday, then a more significantly bearish “key reversal” down on the daily bar chart would be confirmed. That would be one early technical clue that a market top is in place.
The feeder bulls do 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 today’s contract high of $176.20.
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 $172.00. First resistance is seen at $175.00 and then at $175.40. First support is seen at $174.00 and then at $173.50. Wyckoff's Market Rating: 7.5
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