21 February 2014

2 minute read

North America

Mild profit taking was featured. Cash market fundamentals are still overall bullish for the cattle market this week. Bulls still have the overall near-term technical advantage.

However, my bias is still that a major top is in place—or close to it. Bulls’ next upside price “breakout” objective is to push and close prices above solid resistance at the contract high of $143.20.

The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at the February low of $138.65.

First resistance is seen at last week’s high of $142.50 and then at this week’s high of $142.90. First support is seen at this week’s low of $141.55 and then at $141.10. Wyckoff's Market Rating: 7.0

April feeder cattle closed down $0.67 at $171.77 Thursday. More profit taking was featured after prices hit a contract high on Wednesday.

There was good follow-through selling today and a bearish “key reversal” down on the daily bar chart was confirmed.

That is an early technical clue that a market top is in place. But right now the feeder bulls still have the overall near-term technical advantage.

The next upside price breakout objective for the feeder bulls is to push and close prices above solid technical resistance at the contract high of $173.32.

The next downside price breakout objective for the bears is to push and close prices below solid technical support at $170.00. First resistance is seen at $172.00 and then at $172.35. First support is seen at $171.25 and then at $171.00. Wyckoff's Market Rating: 7.0

TheCattleSite News Desk

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