April live cattle futures at the Chicago Mercantile Exchange last week hit a fresh contract high of 96.20 cents a pound. Prices then backed off on some mild profit-taking pressure but have this week rebounded. This recent price action on the daily bar chart has produced a bullish flag formation. The measuring implications from this particular bull flag suggest that if prices do see an upside “breakout” from the pattern, then the upside objective would be just below the 100.00-cent level.
Strong gains on Tuesday could indeed be the beginning of a bullish upside breakout from the bull flag on the daily bar chart in April live cattle futures. Near-term technical resistance is located at the contract high of 96.20 cents, at 96.50 cents and then at 97.00 cents.
Near-term chart support is seen at Tuesday’s low of 95.50 cents, at 95.00 cents and then at this week’s low of 94.55 cents. A close back below solid chart support at 94.00 cents in April live cattle futures would provide the bears with some fresh downside technical momentum.
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