June live cattle futures on the Chicago Mercantile Exchange have seen prices back way off from the early-March contract high of $99.82. Prices late last week hit a fresh two-month low of 91.95 cents. A downtrend line has formed on the daily bar chart for June live cattle futures, drawn off the contract high scored in March and the April high. However, an uptrend line drawn off the October, November, December and January lows is also still in place on the daily bar chart for June live cattle.
There are now trend lines “drawn in the sand” for June live cattle futures. A push solidly below strong trend-line support at the $92.00 level would produce some significant near-term chart damage to suggest another leg down in prices in the near term. A strong price move above trend-line resistance at $96.00 would be significantly bullish to suggest a run back to the contract high of $99.82, or above.
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Near term technical resistance for June live cattle is located at $93.75, at $94.00, at $94.25 and then at $95.00. Near-term technical support is located at Monday’s low of $92.35 and then at last week’s low of $91.95. At present, the bears do have downside technical momentum on their side, and the onus is on the bulls to very soon jump-start a rally.
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