Wyckoff's Closing Report: Live Cattle Closed Lower01 July 2014
US - August live cattle closed down $0.75 at $150.36 Monday.
Prices closed nearer the session low on profit taking. A bullish USDA cattle-on-feed report last Friday and record high cash cattle trade could not support the futures market today. Any time a market cannot rally on fresh, bullish fundamental news, it’s a clue that all the bullish news has already been factored into futures market prices.
The cattle bulls still have the solid overall near-term technical advantage in this major and mature bull market. A three-month-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 the recent contract high of $153.02.
The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $148.00. First resistance is seen at $151.00 and then at $152.00. First support is seen at today’s low of $149.75 and then at $149.00. Wyckoff's Market Rating: 7.5
August feeder cattle closed down $1.30 at $213.02 Monday. Prices hit another contract and record high today and then reversed course to close lower and near the session low.
Prices also scored a bearish “outside day” down on the daily bar chart today. If there is good follow-through selling pressure on Tuesday then a bearish “key reversal” down would be confirmed on the daily bar chart, which would be on early clue that a market top is finally in place. But right now the bulls still have the firm overall near-term technical advantage. Prices are still in a five-month-old uptrend on the daily bar chart.
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 $216.12.
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 $214.00 and then at $215.00. First support is seen at today’s low of $212.15 and then at $211.00. Wyckoff's Market Rating: 7.5
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