US - Cattle markets have been strong for prolonged periods but the time may come for an end to record prices, according to TheCattleSite analyst, Jim Wyckoff.
August live cattle closed up $2.17 at $152.82 Thursday. Prices closed nearer the session high and pushed to yet another contract high today.
The cattle bulls have the strong overall near-term technical advantage as this major and mature bull market rolls on.
It would not surprise me if this latest big upmove is the final phase that ends this major and record-setting bull market in cattle.
But make no mistake: bulls are presently in solid command. A 10-week-old uptrend remains in place on the daily bar chart.
Bulls’ next upside price objective is to push and close prices above solid resistance at $154.00. The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $150.00.
First resistance is seen at today’s contract high of $152.95 and then at $153.50. First support is seen at $152.00 and then at today’s low of $150.80. Wyckoff's Market Rating: 10.0
August feeder cattle closed up the $3.00 limit at $215.12 Thursday. Prices soared to another contract and record high.
Bulls have the strong overall near-term technical advantage. Prices are in a five-month-old uptrend on the daily bar chart.
However, it’s my bias this is the final big push for this very mature bull market. That means the next downside price correction of significance will mark a market top.
The next upside price objective for the feeder bulls is to push and close prices above solid technical resistance at $217.50.
The next downside price breakout objective for the bears is to push and close prices below solid technical support at $210.00. First resistance is seen at today’s contract high of $215.12 and then at $216.00.
First support is seen at $214.00 and then at today’s low of $212.80. Wyckoff's Market Rating: 10.0
TheCattleSite News Desk
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