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.