Bullish Ascending Triangle in August Feeder Cattle

Farm Journal logo

    August feeder cattle futures on Monday closed at a fresh seven-week high close and have pushed up to solid technical resistance at $115.00. Prices have made a strong recovery from the July low of $109.55 and the bulls have gained fresh near-term technical momentum.
    A close in August feeders solidly above the $115.00 resistance barrier would be another bullish clue to suggest a challenge of the contract high of $116.50, scored in May.    
    If August feeder cattle futures prices do close strongly above $115.00, that could also be the beginning of an upside "breakout" from a bullish ascending triangle pattern that has formed on the daily bar chart the past five weeks. The measuring implications of this particular triangle pattern suggest that a bullish upside "breakout" would find an upside price objective being the $122.00 in August feeders.
    Importantly, from a longer-term technical perspective, nearby feeder cattle futures find very strong longer-term chart resistance at  the $120.00 area. In 2004, 2005, 2006 and 2007, rallies in nearby feeder cattle futures prices were all halted just shy of the $120.00 mark.
    The all-time high in nearby feeder cattle futures prices was scored in September of 2007, at $119.80.

 

Latest News

Getting Consumers to Shop Retail’s Deli-Prepared

An online quantitative survey of 1,193 consumers was able to identify opportunities and challenges to getting consumers to shop the deli-prepared section of their grocery store.

20 min ago
.
Trump Pardons South Dakota Ranchers

President Trump granted full pardons to members of a South Dakota ranching family who were supported by Governor Kristi Noem and Senator Mike Rounds.

5 hours ago
.
Angus Names Esther McCabe Director of Performance Programs

The American Angus Association® recently named Esther McCabe, Ph.D., a third-generation Angus producer originally from Elk City, Kansas, as director of performance programs.

8 min ago
Alltech E-CO2 has developed the Feeds EA™
Alltech E-CO2 launches Feeds EA™ model to lower feed footprint

As agriculture moves towards more sustainable solutions and ingredients, Alltech E-CO2 has developed the Feeds EA™ model to help feed manufacturers and producers measure and lower the carbon footprint of their feed.

20 min ago
Feeding margins declined
Profit Tracker: Cattle, Hog Margins In The Red

Higher grain prices and lower cash livestock prices contributed to a decline in feeding margins last week, leaving closeouts showing red ink for both cattle and hogs.

1 day ago
CAB Insider: Carcass Value Shifts, a Sign of the Times

Jan. fed cattle prices are normally choppy and we’re seeing that pattern in 2021. A primary difference, compared to 2020, is that last week’s average price is $14/cwt. lower, the same discount as the 5-year average.

18 min ago