AUGUST LIVE CATTLE
August live cattle closed steady at $91.67 today. Prices closed nearer the session low and hit a fresh six-week low today. Lower cash cattle trade last week did limit buying interest in futures today. However, boxed beef prices were higher today amid good movement, and that has led to ideas of a near-term low being in place. Also, there is very strong technical support just below that market, which has halted price declines since late March. My bias is still that the downside in the cattle futures market is limited once prices move close to strong chart support from $90.50 to $90.00. The bears’ next downside price objective is closing prices below solid chart support at the April low of $90.10. The bulls’ next upside technical price objective is closing prices above solid chart resistance at $92.00. First resistance is seen at today’s high of $91.15 and then at $91.50. First support is seen at today’s low of $90.50 and then at $90.10.
Wyckoff’s Market Rating: 5.5.
AUGUST FEEDER CATTLE
August feeder cattle closed up $0.77 at $111.02 today. Prices closed near the session high on some short covering from recent losses. Bulls do still have the overall near-term technical advantage, as prices traded not that far down from the recent contract high. The next upside price objective for the feeder bulls is to produce a close above solid chart resistance at the contract high of $114.40. The next downside price objective for the bears is closing prices below solid support at the May low of $108.90. First resistance is seen at $111.50 and then at $112.00. First support is seen at $110.00 and then at $109.25.
Wyckoff’s Market Rating: 8.0
Source: VantagePoint Intermarket Analysis Software
AUGUST LEAN HOGS
August lean hogs closed up $0.50 at $75.00 today. Prices closed near the session high and hit a fresh four-week high today. Short covering and fresh speculative buying today produced a bullish upside “breakout” from the recent sideways trading range at lower price levels. The next upside price objective for the bulls is closing prices above solid chart resistance at $76.50. The next downside price objective for the bears is closing prices below solid technical support at the May low of $72.45. First resistance is seen at today’s high of $75.10 and then at $75.50. First support is seen at $74.50 and then at today’s low of $74.10.
Wyckoff’s Market Rating: 7.0.
JULY PORK BELLIES
July pork bellies closed down $2.50 at $96.20 today. Prices hit a fresh 4.5-month low today and closed nearer the session low. Bears have gained solid fresh downside technical momentum recently. An 11-week-old downtrend line is still in place on the daily bar chart. The market is now short-term oversold, technically, and an upside corrective bounce very soon would not be surprising. The next upside price objective for the bulls is closing prices above solid resistance at $100.00. The next downside price objective for the bears is closing prices below solid chart support at $95.00. First resistance is seen at $97.00 and then at $98.00. First support is seen at today’s low of $95.70 and then at $95.00.
Wyckoff’s Market Rating: 2.5
