US - Prices are solidly higher across the hog and cattle markets this week, reports Jim Wyckoff.
Numbers of cattle supplies lifting this week is the talk on the market which may provide bearish undertones amongst a mostly bullish picture.
Feeder cattle have soared to massive highs this week, although this may be a major top put into the market.
August live cattle closed up $0.30 at $143.57 Tuesday. Prices closed nearer the session high and hit another contract high, writes Mr Wyckoff.
Bullish cash market fundamentals continue to push the futures market higher.
The cattle bulls have the strong overall near-term technical advantage. However, this latest upmove could be the final, “blow-off-top” phase of this very mature bull market run. Bulls’ next upside price objective is to push and close prices above solid resistance at $145.00.
The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $140.82. First resistance is seen at today’s contract high of $143.80 and then at $144.50. First support is seen at today’s low of $143.00 and then at $142.50. Wyckoff's Market Rating: 9.0
August feeder cattle closed up $1.52 at $205.05 Tuesday. Prices soared to another fresh contract and record high today. Bulls have the strong overall near-term technical advantage. Prices are in a four-month-old uptrend on the daily bar chart.
However, this latest strong push higher in prices could well be the final “blow-off-top” phase of this very mature bull market run, meaning a market top could be coming sooner rather than later. The next upside price breakout objective for the feeder bulls is to push and close prices above solid technical resistance at $207.50.
The next downside price breakout objective for the bears is to push and close prices below solid technical support at this week’s low of $202.17. First resistance is seen at today’s contract high of $205.17 and then at $206.00. First support is seen at $204.00 and then at today’s low of $203.10. Wyckoff's Market Rating: 10.0
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