June live cattle futures on the Chicago Mercantile Exchange on Monday scored a fresh two-week high of $94.80, as the bulls have re-established a four-month-old uptrend on the daily bar chart. After scoring a contract high of $96.22 on March 19, June live cattle futures had backed off sharply to score a low of $91.50 on March 26. However, the bulls viewed that price dip as a bargain-hunting buying opportunity and prices have posted a strong rally from that level to resume the uptrend.
The next upside price objective for the empowered live cattle market bulls is producing a close above solid chart resistance at the contract high of $96.22. Below that level does lie technical resistance at this week’s high of $94.80, at $95.00, $95.35 and then at $96.00. Technical support for June live cattle futures comes in at $93.50, at $93.00, $92.50 and then at $92.00. A close below strong technical support at the last “reaction low” on the daily chart, at $91.50, would produce significant near-term chart damage and negate the aforementioned price uptrend. Stay tuned! Jim Wyckoff
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