by Jim Wyckoff, Senior Analyst TraderPlanet.com
JUNE LIVE CATTLE
June live cattle closed up $0.35 at $93.72 yesterday. Prices closed nearer the session high and hit a fresh seven-week high yesterday. Bulls have the near-term technical advantage and gained more strength yesterday. A four- week-old uptrend is still in place on the daily bar chart. The next downside technical objective for the bears is pushing prices below solid technical support at last week’s low of $91.60. Bulls’ next upside price objective is to push and close prices above solid chart resistance at $95.00. First resistance is seen at yesterday’s high of $93.80 and then at $94.00. First support is seen at yesterday’s low of $93.10 and then at $92.50.
Wyckoff’s Market Rating: 7.0
AUGUST FEEDER CATTLE
August feeder cattle closed down $1.47 at $109.17 yesterday. Prices gapped lower on the daily bar chart and closed near the session low yesterday on profit-taking pressure from recent strong gains and on big gains in corn prices yesterday. No serious chart damage occurred yesterday, but strong follow- through selling on Tuesday would likely produce some significant near-term chart damage. A four-week-old uptrend 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 $108.65. The next upside price objective for the feeder bulls is to push and close prices above solid technical resistance at $110.35, which would fill on the upside yesterday’s downside price gap. First resistance is seen at $109.65 and then at $110.00. First support is seen at yesterday’s low of $109.05 and then at $108.65.
Wyckoff’s Market Rating: 6.0
JUNE LEAN HOGS
June lean hogs closed down $0.90 at $75.45 yesterday. Prices closed nearer the session low on profit-taking pressure from recent gains. No chart damage occurred yesterday. Losses in futures yesterday were limited by higher cash hog prices. Bulls still the near-term technical advantage. The next upside price objective for the bulls is to push and close prices above solid chart resistance at last week’s high of $77.10. The next downside price objective for the bears is pushing prices below solid technical support at last week’s low of $72.80. First resistance is seen at $76.00 and then at yesterday’s high of $76.70. First support is seen at yesterday’s low of $75.05 and then at $74.50.
Wyckoff’s Market Rating: 6.5
JULY PORK BELLIES
July pork bellies closed down $2.55 at $74.25 yesterday. Prices closed near the session low and hit a fresh three-week low. Bears still have the technical advantage. The next upside price objective for the bulls is closing prices above solid technical resistance at last week’s high of $78.80. The next downside price objective for the bears is pushing prices below solid chart support at $71.30. First resistance is seen at $75.00 and then at $76.00. First support is seen at yesterday’s low of $74.00 and then at $73.00.
Wyckoff’s Market Rating: 3.0
