Live Cattle Market Bears in Technical Command

live_cattle_june2011June live cattle futures on the Chicago Mercantile Exchange on Tuesday gapped lower on the daily bar chart and hit a fresh five-month low of $106.67 a hundredweight. Prices did manage to recover a bit by the close Tuesday and finished moderately lower and nearer the daily high. Price action this week has seen a bearish downside technical “breakout” from a recent sideways trading range on the daily bar chart. A six-week-old downtrend is also in place on the daily bar chart for June live cattle futures. The bears have the overall near-term technical advantage as the path of least resistance for prices is presently sideways to lower. The cattle market bulls’ next upside price breakout objective is to push and close June futures prices above solid technical resistance at the March low of $110.65. The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at Tuesday’s low of $106.67. First resistance for June live cattle futures is seen at $108.30, which is the top of Tuesday’s downside price gap, and then at $109.00. First support is seen at $107.50 and then at $107.00. Stay tuned! Jim Wyckoff

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