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Cattle Futures: Is a Market Top on the Horizon?

20 March 2014
Jim Wyckoff Commentary -  TheCropSite

US - Bulls still remain in control and there have been no solid early technical clues of a market top being close at hand, reports Jim Wyckoff TheCattleSite's market analyst.

June live cattle closed down $0.07 at $138.27 Wednesday. Prices closed nearer the session high and hit a fresh contract high today.

Cash market fundamentals remain fully bullish, as traders await the results of this week’s cash cattle trade in the U.S. Bulls’ next upside price “breakout” objective is to push and close prices above solid resistance at $140.00.

The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $135.00.

First resistance is seen at today’s contract high of $138.45 and then at $139.00. First support is seen at $137.50 and then at $137.00. Wyckoff's Market Rating: 8.0

May feeder cattle closed up $0.25 at $178.57 Wednesday. Prices hit a contract high Monday and the feeder bulls still have the solid 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 $180.00. The next downside price breakout objective for the bears is to push and close prices below solid technical support at $175.00.

First resistance is seen at Monday’s contract high of $178.82 and then at $179.50. First support is seen at today’s low of $177.85 and then at $177.00. Wyckoff's Market Rating: 8.0

Hogs

June lean hogs closed down $0.75 at $132.25 Wednesday. Prices backed off on some profit taking after hitting a contract and all-time record high Tuesday.

This market is still in a parabolic stage, which suggests, from a time perspective, that a market top is close at hand.

There are still very bullish cash hog market fundamentals at work. Hog futures bulls have the solid overall near-term technical advantage.

Prices are in a very steep two-month-old uptrend on the daily bar chart. The next upside price breakout objective for the hog bulls is to push and close prices above solid chart resistance at $135.00.

The next downside price breakout objective for the bears is pushing prices below solid technical support at $125.00.

First resistance is seen at the contract high of $133.20 and then at $134.00. First support is seen at today’s low of $131.05 and then at $130.00. Wyckoff's Market Rating: 9.0

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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