by Jim Wyckoff, Senior Editor, TraderPlanet.com
DECEMBER LIVE CATTLE
December live cattle closed down $2.85 at $99.95 yesterday. Prices gapped sharply lower on the daily bar chart, closed near the session low and hit a fresh eight- month low yesterday. Bearishly postured “outside markets”– sharply lower crude oil prices and a stronger U.S. dollar– weighed on the cattle market yesterday. Serious near-term technical damage was inflicted yesterday, amid global recession worries. Prices are in a three-month-old downtrend on the daily bar chart. Bears have the solid near-term technical advantage and gained more momentum yesterday. Bulls’ next upside price objective is to push and close prices above solid technical resistance at $102.25, which would fill on the upside yesterday’s downside price gap. The next downside technical objective for the bears is pushing and closing prices below solid technical support at $98.00. First resistance is seen at $101.05 and then at yesterday’s high of $101.70. First support is seen at yesterday’s low of $99.80 and then at $99.50.
Wyckoff’s Market Rating: 2.0.
NOVEMBER FEEDER CATTLE
November feeder cattle closed down the $3.00 limit at $102.57 yesterday. Prices gapped sharply lower on the daily bar chart and hit a fresh contract low yesterday. More serious chart damage occurred yesterday. Bears have the solid near-term technical advantage. Prices yesterday saw a bearish downside breakout from a bearish symmetrical triangle pattern on the daily bar chart. Prices are still in a steep seven-week-old downtrend on the daily bar chart. The next upside price objective for the feeder bulls is to push prices above solid technical resistance at $105.25, which would fill on the upside yesterday’ downside price gap on the daily chart. The next downside price objective for the bears is to produce a close below solid technical support at $100.00. First resistance is seen at $103.00 and then at yesterday’s high of $104.05. First support is seen at $102.00 and then at $101.50.
Wyckoff’s Market Rating: 1.0
DECEMBER LEAN HOGS
December lean hogs closed down $1.00 at $65.05 yesterday. Prices closed nearer the session high. Limit down corn prices and bearishly postured “outside markets”–sharply lower crude oil prices and a stronger U.S. dollar–weighed on the hog futures market yesterday. Hog bears still have the technical advantage. A bearish broadening pattern has formed on the daily bar chart. Prices are also still in a steep seven-week-old downtrend on the daily bar chart. The next upside price objective for the bulls is to push prices above solid chart resistance at $67.70. The next downside price objective for the bears is pushing prices and closing below solid technical support at the September low of $64.25. First resistance is seen at yesterday’s high of $65.35 and then at $66.00. First support is seen at yesterday’s low of $64.50 and then at $64.25.
Wyckoff’s Market Rating: 1.5
FEBRUARY PORK BELLIES
February pork bellies closed down $2.92 at $96.75 yesterday. Prices closed near the session low on profit taking and long liquidation. The next upside price objective for the bulls is closing prices above solid technical resistance at last week’s high of $100.22. The next downside price objective for the bears is pushing and closing prices below solid technical support at $95.00. First resistance is seen at $97.00 and then at $98.00. First support is seen at $96.00 and then at $95.00.
Wyckoff’s Market Rating: 6.0
