August 14, 2009
Bearish chart patterns for US live cattle
October live cattle futures at the Chicago Mercantile Exchange have seen significantly bearish technical developments recently. Prices are presently in an accelerating three-week-old downtrend on the daily bar chart and this week hit a fresh six-week low of US$87.65.
Price action the past few weeks has also formed a bearish head-and-shoulders top reversal pattern on the daily chart for October live cattle futures.
A close in October live cattle prices below solid technical support at this week's low of US$87.65 would produce more technical damage to suggest still more downside price pressure in the near term.
It would take a close in prices above solid technical resistance at US$89.60 to provide the bulls with fresh upside near-term technical momentum.
Near-term technical resistance for October live cattle lies at US$88.65, at US$89.00 and then at US$89.60. Technical support is located at US$88.00 and then at US$87.65.
