May feeder cattle futures at the Chicago Mercantile Exchange have seen very choppy trading conditions the past six weeks. Prices at present are in the middle of a choppy trading range bound by strong technical resistance at the February high of $99.30 and by strong technical support at the February low of $90.50.
The direction in which May feeders “break out” of the aforementioned trading range is likely to be the direction of the next significant near-term price trend of the market.
Near term, the feeder cattle bulls need to push and close May futures prices above solid chart resistance at this week’s high of $96.70 to gain some fresh upside near-term technical momentum.
The next downside price objective for the feeder bears is to push and close May futures prices below solid technical support at $92.50.
Seasonality studies do show cattle futures prices rallying from the February timeframe into the August timeframe.
