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Cattle Futures: Prices Peak Before Backing Off, Wednesday

11 September 2014
Jim Wyckoff Commentary -  TheCropSite

US - A new record contract high was hit yesterday before prices backed off to close near mid-range, reports TheCattleSite analyst, Jim Wyckoff.

This resulted in a mildly bearish “outside day” scored down on the daily bar chart.

October live cattle closed down $0.20 at 159.4 on Wednesday.

If there is solid follow-through selling pressure on Thursday, then a more significantly bearish “key reversal” down would be confirmed on the daily bar chart. That would be an early technical clue that a market top is in place.

Bulls still have the solid overall near-term technical advantage. Bulls’ next upside price objective is to push and close prices above solid resistance at today’s contract high of $161.75.

The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $156.00. First resistance is seen at $160.25 and then at $160.75. First support is seen at $159.00 and then at today’s low of $157.95. Wyckoff's Market Rating: 7.5

October feeder cattle closed down $0.475 at $227.25 today. Prices hit a new contract and record high today and then backed off to close near mid-range and score a mildly bearish “outside day” down on the daily bar chart.

If there is solid follow-through selling pressure on Thursday, then a more significantly bearish “key reversal” down would be confirmed on the daily bar chart.

That would be an early technical clue that a market top is in place. Bulls still have the solid overall near-term technical advantage.

The next upside price objective for the feeder bulls is to push and close prices above solid technical resistance at today’s contract high of $229.82.

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 $223.80.

First resistance is seen at $228.00 and then at $229.00. First support is seen at $227.00 and then at $226.00. Wyckoff's Market Rating: 7.5

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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