Cattle Futures: Prices Peak Before Backing Off, Wednesday

US - A new record contract high was hit yesterday before prices backed off to close near mid-range, reports TheCattleSite analyst, Jim Wyckoff.
calendar icon 11 September 2014
clock icon 2 minute read
Jim Wyckoff Commentary -  TheCropSite

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

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