by Jim Wyckoff, Senior Analyst TraderPlanet.com
AUGUST LIVE CATTLE
August live cattle closed down $1.02 at $100.82 today. Prices closed near mid-range and were pressured on profit taking from recent gains. No chart damage occurred today. A bull flag has formed on the daily bar chart. Bulls still have the solid near-term technical advantage amid no early technical warning signals that a market top is close at hand. Bulls’ next upside price objective is to push and close prices above solid resistance at the week’s contract high of $102.12. The next downside technical objective for the bears is pushing and closing prices below solid technical support at $100.00. First resistance is seen at today’s high of $101.32 and then at $102.12. First support is seen at today’s low of $100.30 and then at $100.00.
Wyckoff’s Market Rating: 8.0
AUGUST FEEDER CATTLE
August feeder cattle closed down $2.32 at $113.70 today. Prices closed near the session low on profit-taking pressure from recent gains and on sharply higher corn prices today. No serious chart damage occurred today, but strong follow-through selling on Tuesday would likely produce some chart damage. Bulls still have the overall near-term technical advantage. The next upside price objective for the feeder bulls is to push and close prices above solid technical resistance at the contract high of $116.50. The next downside price objective for the bears is to produce a close below solid support at the last “reaction low” of $111.70. First resistance is seen at $114.00 and then at $115.00. First support is seen at today’s low of $113.60 and then at $113.00.
Wyckoff’s Market Rating: 7.0
AUGUST LEAN HOGS
August lean hogs closed down $1.60 at $77.37 today. Prices closed nearer the session low today on fund selling and amid weaker cash hog prices to start the week. Trading action has turned very choppy recently and prices are still trapped in a sideways trading range between the May high of $79.30 and solid technical support at $76.20. The next upside price objective for the bulls is to push prices above solid chart resistance at last week’s high of $79.30. The next downside price objective for the bears is pushing and closing prices below solid technical support at $76.20. First resistance is seen at $78.00 and then at $78.40. First support is seen at today’s low of $76.90 and then at $76.20.
Wyckoff’s Market Rating: 5.0
JULY PORK BELLIES
July pork bellies closed down $0.72 at $78.00 today. Prices closed nearer the session high today. Bears still have the slight near-term technical advantage. The next upside price objective for the bulls is closing prices above solid technical resistance at $80.00. The next downside price objective for the bears is pushing prices below solid chart support at $75.00. First resistance is seen at today’s high of $78.70 and then at $79.00. First support is seen at today’s low of $77.00 and then at $76.00.
Wyckoff’s Market Rating: 4.5
