Live Cattle Bulls Working on Price Uptrend

August live cattle futures at the Chicago Mercantile Exchange are in a five-week-old uptrend on the daily bar chart. Prices are working up from a double-bottom reversal pattern that occurred on the daily chart during April. Prices Monday hit a fresh three-month high of 81.67 cents a pound, and then backed off to close nearer the session low on some profit-taking pressure. The live cattle bulls still have some near-term technical momentum on their side.

Click on the chart to enlarge

Their next major upside price objective is pushing prices above longer-term resistance at the 84.00-cent level, basis nearby futures. Two popular shorter-term moving averages overlaid on the daily bar chart for August live cattle (9- and 18-day) are in a bullish mode, as the 9-day is above the 18-day moving average. One early technical clue that the uptrend is losing strength and may be about to end would be if these two moving averages produced a bearish crossover signal, whereby the 9-day moves back below the 18-day moving average.
In August live cattle futures there is near-term technical support located at 80.00 cents and then at 79.60 cents. A close below solid technical support at 78.00 cents would produce some near-term chart damage and would provide the live cattle futures bears with some fresh downside technical momentum.
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