by Jim Wyckoff, Senior Analyst TraderPlanet.com
FEBRUARY LIVE CATTLE
February live cattle closed up $0.42 at $97.17 today. Prices closed near mid-range but did hit a fresh two- week high today. Friday’s bullish weekly high close and then today’s follow-through strength does give the bulls some confidence that a near term low is in place. Mostly stronger commodity futures prices today also gave the bulls some fuel. Bears still have the slight near-term technical advantage as a 10-week-old downtrend is still in place from the September high. The next downside technical objective for the bears is closing prices below solid support at the November low of $95.65. Bulls’ next upside price objective is to close prices above solid chart resistance at $98.00. First resistance is seen at today’s high of $97.50 and then at $98.00. First support is seen at today’s low of $96.75 and then at $96.20.
Wyckoff’s Market Rating: 4.0.
MARCH FEEDER CATTLE
March feeder cattle closed up $0.20 at $107.65 today. Prices closed near mid-range. Bears still have solid downside technical momentum on their side. A bear flag has formed on the daily bar chart for March feeders. The next downside price objective for the bears is to produce a close below solid support at last week’s low of $106.90. The next upside price objective for the feeder bulls is to produce a close above solid resistance at $109.00. First resistance is seen at today’s high of $108.05 and then at $108.60. First support is seen at today’s low of $107.25 and then at $107.00.
Wyckoff’s Market Rating: 3.5
FEBRUARY LEAN HOGS
February lean hogs closed up $1.75 at $63.45 today. Prices closed nearer the session high today and hit a fresh seven- week high. Bulls today gained upside technical momentum and gained confidence that a near-term market low is in place. Bulls now need to show that important follow-through buying on Tuesday or Wednesday. The next downside price objective for the bears is closing prices below solid technical support at last week’s low of $60.00. The next upside price objective for the bulls is closing prices above solid chart resistance at $65.00. First resistance is seen at today’s high of $63.95 and then at $65.00. First support is seen at $63.00 and then at $62.50.
Wyckoff’s Market Rating: 4.5.
FEBRUARY PORK BELLIES
February pork bellies closed up $1.15 at $92.47 today. Prices closed near mid-range but did hit a fresh two-week high today. No serious chart damage has occurred recently. Bulls have regained some upside technical momentum. The next upside price objective for the bulls is closing prices above solid technical resistance at the November high of $94.50. The next downside price objective for the bears is closing prices below solid chart support at last week’s low of $88.82. First resistance is seen at today’s high of $93.00 and then at $94.00. First support is seen at today’s low of $91.35 and then at $90.00.
Wyckoff’s Market Rating: 6.5
