US - Bulls still have the near-term technical advantage but are fading, reports TheCattleSite analyst, Jim Wyckoff.
April live cattle closed down $0.77 at $142.90 on Thursday. Prices closed near the session low and showed follow-through weakness from Wednesday’s strong losses that produced a bearish “key reversal” down on the daily bar chart.
That is an early technical clue that a market top is in place. Profit taking was featured again today.
A bearish weekly low close on Friday would be a stronger clue that a market top is in place. Bulls’ next upside price “breakout” objective is to push and close prices above solid resistance at Wednesday’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 $141.00. First resistance is seen at today’s high of $143.60 and then at $144.00.
First support is seen at today’s low of $142.80 and then at $142.00. Wyckoff's Market Rating: 6.5
May feeder cattle closed down $1.27 at $173.42 Thursday. More profit taking was featured. Prices Wednesday scored a bearish “outside day” down on the daily bar chart.
There was good follow-through selling pressure on Thursday and a more significantly bearish “key reversal” down on the daily bar chart was confirmed.
That is 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 Wednesday’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 $174.00 and then at $174.50. First support is seen at $173.00 and then at $172.50. Wyckoff's Market Rating: 7.0
TheCattleSite News Desk
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