by Jim Wyckoff, Senior Analyst TraderPlanet.com
JUNE LIVE CATTLE
June live cattle closed up $0.35 at $89.55 yesterday in quieter trading. Prices closed near the session high and scored a mildly bullish “outside day” up on the daily bar chart, on short covering in a bear market. Bears still have the solid near-term technical advantage. However, a strong up day on Tuesday or Wednesday would provide the bulls with some confidence that a near-term market low is in place. The next downside technical objective for the bears is closing prices below solid solid technical support at $88.00. Bulls’ next upside price objective is to push and close prices above solid chart resistance at $90.00. First resistance is seen at yesterday’s high of $89.67 and then at $90.00. First support is seen at $89.00 and then at yesterday’s low of $88.70.
Wyckoff’s Market Rating: 2.5
MAY FEEDER CATTLE
May feeder cattle closed up $0.85 at $101.95 yesterday. Prices closed nearer the session high on short covering in a bear market. Bears are still in solid technical command, but strong follow-through buying on Tuesday or Wednesday would give the bulls some confidence that a market low might be in place. A steep two-month-old downtrend is in place on the daily bar chart. The next downside price objective for the bears is to produce a close below solid support at the contract low of $99.27. The next upside price objective for the feeder bulls is to push and close prices above resistance at last week’s high of $102.50. First resistance is seen at $102.00 and then at $102.50. First support is seen at $101.00 and then at yesterday’s low of $100.25.
Wyckoff’s Market Rating: 2.5
JUNE LEAN HOGS
June lean hogs closed down $0.22 at $72.00 yesterday. Prices closed near mid-range on mild profit-taking pressure after recent strong, limit-up gains. Recent price action formed a bullish “island bottom” reversal pattern and a bullish V- bottom reversal pattern on the daily bar chart. Bulls have gained near-term technical momentum recently. The next downside price objective for the bears is pushing and closing prices below solid technical support at $70.00. The next upside price objective for the bulls is to push and close prices above solid chart resistance at $73.50. First resistance is seen at yesterday’s high of $72.75 and then at $73.00. First support is seen at yesterday’s low of $71.30 and then at $71.00.
Wyckoff’s Market Rating: 5.0
MAY PORK BELLIES
May pork bellies closed up $1.05 at $73.15 yesterday. Recent price action has formed a bullish island bottom reversal pattern on the daily bar chart. A steep seven-week-old downtrend on the daily bar chart has also been negated recently. The next upside price objective for the bulls is closing prices above solid technical resistance at $75.00. The next downside price objective for the bears is closing prices below solid chart support at $70.00. First resistance is seen at yesterday’s high of $74.40 and then at $75.00. First support is seen at $72.00 and then at yesterday’s low of $71.20.
Wyckoff’s Market Rating: 3.0
