March feeder cattle futures on the Chicago Mercantile Exchange have recently seen a strong upside bounce from the February low of $97.10, which has in turn re-established a two-month-old uptrend on the daily bar chart. Prices Tuesday notched a five-month high of $100.15, as of this writing. Bulls have gained fresh near-term technical momentum the past three trading sessions.
Their next upside price objective is producing a close in March feeders above strong chart resistance at the September 2009 high of $101.55. Above that lies strong technical resistance at the contract high of $102.70. Chart support for March feeder cattle is located at Tuesday’s low of $99.37, at $99.00 and then at $98.50. Strong trend-line chart support is located at the $97.50 area. Stay tuned! Jim Wyckoff