US - If there is strong follow-through selling pressure on Wednesday then a bearish “key reversal” down on the daily bar chart would be confirmed, which would be one early technical clue that a market top is in place.
This is according to TheCattleSite analyst Jim Wyckoff who writes that the bulls remain with a solid overall near-term technical advantage.
August live cattle closed down $0.75 at $145.70 Tuesday. Prices closed near the session low and scored a bearish “outside day” down on the daily bar chart, after hitting another contract high early on.
Bulls’ next upside price objective is to push and close prices above solid resistance at today’s contract high of $147.65.
The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $144.00. First resistance is seen at $146.50 and then at $147.00. First support is seen at $145.00 and then at $144.00. Wyckoff's Market Rating: 7.5
August feeder cattle closed down $0.87 at $207.82 Tuesday. Prices closed near the session low on profit taking after hitting another contract and record high today.
Bulls have the solid overall near-term technical advantage. Prices are in a four-month-old uptrend on the daily bar chart. But this is also a very “long-in-the-tooth” bull market run whose lifetime is likely limited.
The next upside price breakout objective for the feeder bulls is to push and close prices above solid technical resistance at today’s high of $210.00.
The next downside price breakout objective for the bears is to push and close prices below solid technical support at $204.00.
First resistance is seen at $208.50 and then at $209.00. First support is seen at $207.50 and then at $207.00. Wyckoff's Market Rating: 8.5
TheCattleSite News Desk
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