Major Losses as Futures Fade, Thursday
US - Thursday saw heavy profit taking as prices, along with bulls, faded, reports Jim Wyckoff, TheCattleSite analyst.February live cattle closed down $1.52 at $132.90 Thursday. Prices closed near the session low on heavy profit taking. The bulls quickly faded today. Bulls and bears are now back on a level near-term technical playing field. A bull flag pattern on the daily bar chart was negated today.
Some chart damage was inflicted today but more serious near-term technical damage would occur if prices Friday closed at a bearish weekly low close.
Bulls' next upside price "breakout" objective is to push and close prices above solid resistance at the November high of $134.90. The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at the November low of $131.27.
First resistance is seen at $133.50 and then at $134.00. First support is seen at today's low of $132.85 and then at $132.50. Wyckoff's Market Rating: 5.0
January feeder cattle closed down $0.92 at $164.12 Thursday. Prices closed near the session low and scored a bearish "outside day" down on the daily bar chart. The feeder bulls and bears are on a level near-term technical playing field amid choppy trading.
The next upside price breakout objective for the feeder bulls is to push and close prices above solid technical resistance at the November high of $166.00.
The next downside price breakout objective for the bears is to push and close prices below solid technical support at the November low of $162.05.
First resistance is seen at $165.00 and then at last week's high of $165.62. First support is seen at $164.00 and then at $163.45. Wyckoff's Market Rating: 5.0
TheCattleSite News Desk
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