by Jim Wyckof, Senior Analyst TraderPlanet.com
JUNE LIVE CATTLE
June live cattle closed down $1.25 at $87.75 yesterday. Prices did rebound off the close to close near the session high but did still hit a fresh contract low and close at a bearish monthly and quarterly low close yesterday. Yesterday’s high-range close does give the bulls some hope that bears have become exhausted after the recent steep sell off. The next downside technical objective for the bears is closing prices below solid support at yesterday’s contract low of $86.65. Bulls’ next upside price objective is to close prices above solid chart resistance at $90.00. First resistance is seen at $88.00 and then at $88.65. First support is seen at $87.00 and then at $86.65.
Wyckoff’s Market Rating: 1.0
MAY FEEDER CATTLE
May feeder cattle closed down $1.05 at $101.22 yesterday. Prices gapped lower on the daily bar chart and hit a fresh contract low, but did rebound to close near the session high. Still, prices closed at a bearish monthly and quarterly low close. But yesterday’s high-range close does give the bulls a bit of hope that the bears have become exhausted at lower price levels. A steep seven-week-old downtrend is still in place on the daily bar chart. The feeders are presently also short-term technically oversold. The next downside price objective for the bears is to produce a close below solid support at yesterday’s contract low of $99.27. The next upside price objective for the feeder bulls is to push and close prices above resistance at $104.00. First resistance is seen at $102.10, which is the top of yesterday’s downside price gap, and then at $102.50. First support is seen at $100.00 and then at yesterday’s contract low of $99.27.
Wyckoff’s Market Rating: 1.0
JUNE LEAN HOGS
June lean hogs closed down $2.42 at $67.95 yesterday. Prices gapped sharply lower on the daily bar chart and hit a fresh contract low yesterday. Prices also closed at a bearish monthly and quarterly low close yesterday. A bearish USDA hogs and pigs report on Friday helped to sink the hogs yesterday. More fund selling pressure was seen yesterday. Bears are in strong technical command and gained more power yesterday. An eight- week-old downtrend is in place on the daily bar chart. The next downside price objective for the bears is pushing and closing prices below solid technical support at $65.00. The next upside price objective for the bulls is to push and close prices above solid chart resistance at $69.95, which would fill on the upside yesterday’s downside price gap on the daily bar chart. First resistance is seen at $69.00 and then at $69.95. First support is seen at yesterday’s contract low of $67.37 and then at $67.00.
Wyckoff’s Market Rating: 1.0
MAY PORK BELLIES
May pork bellies closed down the $3.00 limit at $67.50 yesterday. Prices hit another fresh contract low. Prices also closed at a monthly and quarterly low close. Very serious near-term chart damage has been inflicted recently. A steep seven-week-old downtrend is in place on the daily bar chart. The next upside price objective for the bulls is closing prices above solid technical resistance at $70.00, which would also fill on the upside yesterday’s big downside price gap on the daily chart. The next downside price objective for the bears is closing prices below solid chart support at $65.00. First resistance is seen at $68.00 and then at $69.00. First support is seen at $67.00 and then at $66.00.
Wyckoff’s Market Rating: 1.0
