by Jim Wyckoff, Senior Analyst TraderPlanet.com
JUNE LIVE CATTLE
June live cattle closed up $0.37 at $91.15 yesterday. Prices closed near the session high and closed at a fresh three-week high close yesterday amid strong recent gains in boxed beef prices, amid good demand. More short covering was seen yesterday. Bulls have gained some fresh upside technical momentum recently and are confident that a near- term market low is in place. The next downside technical objective for the bears is closing prices below solid technical support at $88.50. Bulls’ next upside price objective is to push and close prices above solid chart resistance at $91.00. First resistance is seen at yesterday’s high of $90.15 and then at last week’s high of $90.50. First support is seen at yesterday’s low of $89.35 and then at $89.00.
Wyckoff’s Market Rating: 3.5
MAY FEEDER CATTLE
May feeder cattle closed up $0.02 at $103.07 yesterday. Prices closed near the session high. The bulls still have some upside technical momentum. However, stronger corn prices have limited the upside potential for feeders. Also, a nine-week-old downtrend is still in place on the daily bar chart. The next downside price objective for the bears is to produce a close below solid support at last week’s low of $100.25. The next upside price objective for the feeder bulls is to push and close prices above solid technical resistance at $105.00. First resistance is seen at last week’s high of $103.50 and then at $104.00. First support is seen at $102.50 and then at $102.00.
Wyckoff’s Market Rating: 3.0
JUNE LEAN HOGS
June lean hogs closed up $0.72 at $71.92 yesterday. Prices closed near the session high yesterday. Recent price action has now formed a bull flag on the daily bar chart. However, any bullish upside “breakout” needs to occur Tuesday or Wednesday. If that does not occur, bears will quickly regain technical momentum. The next downside price objective for the bears is pushing prices below solid technical support at $69.60, which would fill on the downside an upside price gap on the daily bar chart. The next upside price objective for the bulls is to push and close prices above solid chart resistance at the April high of $72.75. First resistance is seen at $72.50 and then at $72.75. First support is seen at $71.50 and then at yesterday’s low of $70.80.
Wyckoff’s Market Rating: 3.5
MAY PORK BELLIES
May pork bellies closed up the $3.00 limit at $77.37 yesterday. Prices gapped higher and hit a fresh three-week high. Bulls have gained upside technical momentum recently. 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 $74.37, to fill on the downside yesterday’s upside price gap. First resistance is seen at $78.00 and then at $79.00. First support is seen at yesterday’s low of $76.00 and then at $75.00.
Wyckoff’s Market Rating: 4.0
