Livestock – July 17, 2007

August live cattle closed down $0.27 at $91.35 today. Prices closed near the session low and hit a fresh nearly two-week low today. It now does now appear that last week’s spike higher did produce a bearish buying “exhaustion tail” on the daily bar chart, whereby buying interest dried up at higher price levels and then prices backed way off the high as buyers become exhausted. Now, last week’s high of $94.05 is very strong overhead resistance for the bulls to overcome. The bulls’ next upside technical price objective is closing prices above solid chart resistance at $92.50. The next downside price objective for the bears is to produce a close below solid chart support at $90.50. First resistance is seen at $92.00 and then at today’s high of $92.22. First support is seen at today’s low of $91.30 and then at $91.00.

August feeder cattle up $1.30 at $115.15 today. Prices gapped higher on the daily bar chart, closed nearer the session low but did close at a fresh contract high close today, amid the limit-down move in corn. Last week’s contract high of $117.00 is still strong overhead resistance for the bulls to overcome. The bulls still the overall technical advantage. The next upside price objective for the feeder bulls is to produce a close above solid chart resistance at the contract high of $117.00. The next downside price objective for the bears is to produce a close below solid support at $113.50. First resistance is seen at today’s high of $115.75 and then at $116.00. First support is seen at today’s low of $114.75 and then at $114.00.