Cattle Bulls Work on Forging Market Bottom
December live cattle futures on Monday poked to a fresh three-week high of $93.50 as of this writing. Prices are presently trending higher from the contract low of $87.10 scored on October 24. Price action on Friday did score a bullish weekly high close.
While the bulls have regained some fresh near-term upside technical momentum to begin to suggest that a near-term low is in place, they still have some more heavy lifting to do to better suggest the present rally has been nothing more than just a short-covering bounce in a market that is still overall technically bearish.
December live cattle futures are still trading below a four-month-old downtrend line drawn from the June, July, August and September highs. It would take a price move in December live cattle futures above $100.00 to solidly penetrate on the upside and negate the aforementioned downtrend line. That's still a very tall order for the bulls.
On the downside, a price move in December live cattle back below solid technical support at $90.00 would provide the bears with fresh downside near-term technical strength to suggest a retest of the contract low of $87.10, or below.
