FEEDER CATTLE and LIVE CATTLE
On the 4th of July I analyzed the feeder and live cattle charts from a long-term perspective. Both commodities had perfect breakouts from their long-term consolidation ranges and formed consistent uptrends.
http://techcharts.wordpress.com/2012/07/04/feeder-cattle-live-cattle/
Over the past few weeks the medium-term uptrend on feeder cattle has reversed after it completed a double top chart pattern and broke down its long-term moving average. However, live cattle continued to hold above its medium-term uptrend. We are now seeing a pullback on feeder cattle towards the broken support/resistance at 146 levels and a weak rebound on live cattle.
As the medium-term uptrend on feeder cattle is violated, we can expect at best a short-medium term pullback towards the broken trend channel. Correction on feeder cattle can continue towards 120 levels in the following months. Live cattle will try to sustain its uptrend above the medium-term upward trend but failure to hold above this strong technical level can push prices lower towards 104 levels.
Please note that charts will be attached below in a PDF format for better viewing experience.
