October live cattle futures on the Chicago Mercantile Exchange this week have surged to a fresh six-month high of $90.50 a hundredweight. Price action Monday saw a big move higher that pushed the market above what were several technical resistance levels.
The cattle market bulls this week have gained fresh upside near-term technical momentum to firmly suggest that a market low is in place and that a price uptrend can be sustained.
Impressive for the bulls was the fact that Tuesday saw a general solid down day in most commodity futures markets, yet cattle futures prices were able to hold most of Monday's big gains.
The next upside price objective for the bulls is to push and close October futures prices above solid chart resistance at $91.00. Below that level does lie chart resistance at this week's high of $90.50. A close above $91.00 in October live cattle futures would find the next upside target being strong technical resistance at the January high of $92.70.
On the downside, October live cattle futures find chart support located at Wednesday's low of $89.95 and then at Tuesday's low of $89.32. Solid chart support is located at last week's high of $88.85.