Live Cattle Bulls Fading Fast

april_2011_live_cattle.gifApril CME live cattle futures on Thursday gapped lower on the daily bar chart and hit a fresh four-week low. The cattle market bulls have faded badly recently as a four-month-old uptrend on the daily chart has been negated and a three-week-old downtrend is now in place. The next downside price breakout objective for the cattle market bears is pushing and closing April futures prices below solid chart support at the January low of $109.87. A close below that key near-term technical level would produce more serious chart damage and then suggest a price move to strong technical support at the December low of $107.05. The live cattle futures market bulls would begin to gain fresh upside near-term technical momentum by producing a close back above chart resistance at $113.00. Near-term technical support for April live cattle futures is located at $110.00, at $109.80 and then at $109.50. Near-term resistance is seen at $111.10, at $111.50 and then at $112.00. Stay tuned!–Jim Wyckoff

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