US - While a market top appears to be in place, the bulls still have the technical advantage, reports TheCattleSite analyst Jim Wyckoff.
June live cattle closed up $0.32 at $136.45 Monday. Prices closed nearer the session high on a corrective bounce after selling pressure late last week.
A bearish USDA cattle-on-Feed report last Friday was offset by still-bullish near-term cash cattle market fundamentals.
A bearish “key reversal” down was confirmed on the daily chart last week, which is an early clue that a market top is in place.
Bulls’ next upside price “breakout” objective is to push and close prices above solid resistance at the contract high of $138.75.
The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $134.00. First resistance is seen at $137.00 and then at $137.50. First support is seen at last week’s low of $135.30 and then at $135.00. Wyckoff's Market Rating: 6.5
May feeder cattle closed up $1.07 at $177.57 Monday. Prices closed near the session high on a corrective bounce from last week’s selling pressure.
Price action late last week also produced a bearish “key reversal” down on the daily bar chart, which is one early technical clue of a market top being in place. But more solid upside price action early this week would negate that chart pattern.
Right now the feeder bulls 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 the contract high of $179.25.
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 $178.00 and then at $178.60. First support is seen at $177.00 and then at $176.50. Wyckoff's Market Rating: 7.5
TheCattleSite News Desk
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