February live cattle closed up $0.37 at $130.77 yesterday. Prices closed near the session high yesterday on short covering and a corrective bounce following Friday’s strong selling pressure that did produce a bearish weekly low close and produce some chart damage. The lower U.S. dollar index yesterday also supported the cattle market. Cattle bulls and bears are now back on a level near-term technical playing field as a three-week-old uptrend on the daily bar chart was negated Friday. The bulls’ next upside price breakout objective is to push and close prices above solid technical resistance at last week’s high of $132.90. The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $129.00. First resistance is seen at $131.00 and then at $131.50. First support is seen at Friday’s low of $130.30 and then at yesterday’s low of $129.97. Wyckoff’s Market Rating: 5.0
March feeder cattle closed down $0.22 at $148.20 yesterday. Prices closed near the session high on short covering in a bear market. Bears still have the overall near-term technical advantage. The next upside price breakout objective for the feeder bulls is to push and close prices above solid technical resistance at the November high of $150.60. The next downside price breakout objective for the bears is to push and close prices below solid technical support at the November low of $146.85. First resistance is seen at $148.50 and then at $149.00. First support is seen at yesterday’s low of $147.85 and then at $147.50. Wyckoff’s Market Rating: 2.5
February lean hogs closed down $1.07 at $85.85 yesterday. Prices closed nearer the session low yesterday, hit a fresh three-week low and also scored a bearish “outside day” down on the daily bar chart. The hog bulls still have the overall near-term technical advantage but the higher volatility at higher price levels is a warning signal that a market top is in place. The next upside price breakout objective for the hog bulls is to push and close prices above solid chart resistance at the November contract high of $88.25. The next downside price breakout objective for the bears is pushing prices below solid technical support at $84.00. First resistance is seen at $86.32 and then at $87.00. First support is seen at yesterday’s low of $85.60 and then at $85.00. Wyckoff’s Market Rating: 7.0
