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Cattle Futures: Market Turns Neutral to Bullish, Thursday

11 April 2014
Jim Wyckoff Commentary -  TheCropSite

US - Indicators suggest prices could go sideways to higher in live and feeder cattle, reports TheCattleSite analyst, Jim Wyckoff.

April live cattle closed up $0.25 at 144.00. April cattle closed higher on Thursday. The high-range close sets the stage for a steady to higher opening when Friday's session begins trading.

Stochastics and the RSI have turned neutral to bullish signaling that sideways to higher prices are possible near-term.

Closes above the 20-day moving average crossing at 144.76 would confirm that a low has been posted.

If April renews the decline off March's high, the 38 per cent retracement level of the November-March-rally crossing at 141.38.

First resistance is the 20-day moving average crossing at 144.76. Second resistance is March's high crossing at 147.00.

First support is Monday's low crossing at 142.35. Second support is the 38 per cent retracement level of the November-March-rally crossing at 141.38.

April feeder cattle closed down $0.60 at $178.27. April Feeder cattle gapped down and closed lower on Thursday.

The low-range close sets the stage for a steady to lower opening when Friday's night session begins trading. Stochastics and the RSI are turning neutral to bullish signaling that sideways to higher prices are possible near-term.

If April renews this year's rally into uncharted territory, upside targets will be hard to project.

Closes below the 20-day moving average crossing at 177.44 are needed to confirm that a short-term top has been posted. First resistance is March's high crossing at 179.80. Second resistance is unknown.

First support is the 20-day moving average crossing at 177.44. Second support is the reaction low crossing at 174.50.

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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