by Jim Wyckoff, Senior Analyst TraderPlanet.com
OCTOBER LIVE CATTLE
October live cattle closed up $0.17 at $95.65 today. Prices closed near mid-range on tepid short covering following recent strong losses. Ideas of higher cash cattle trade taking place later this week amid a good start for beef prices this week also limited selling interest today. Friday’s USDA cattle on feed report was also deemed friendly to futures. Technically, chart damage has been inflicted recently. Bulls and bears are back on a level near-term technical playing field. The bulls’ next upside technical price objective is closing prices above solid chart resistance at $96.50. The next downside price objective for the bears is to produce a close below solid chart support at last week’s low of $93.62. First resistance is seen at today’s high of $96.05 and then at $96.50. First support is seen at today’s low of $95.25 and then at $95.00.
Wyckoff’s Market Rating: 5.0.
OCTOBER FEEDER CATTLE
October feeder cattle closed up $0.62 at $117.85 today. Prices hit a fresh three-week high today and closed near mid-range. Bulls have regained solid upside technical momentum and still have the solid overall technical advantage. The next upside price objective for the feeder bulls is to produce a close above solid chart resistance at the contract high of $118.97. The next downside price objective for the bears is to produce a close below solid support at $116.00. First resistance is seen at today’s high of $118.20 and then at $118.97. First support is seen at today’s low of $117.35 and then at $117.00.
Wyckoff’s Market Rating: 8.5
Source: VantagePoint Intermarket Analysis Software
OCTOBER LEAN HOGS
October lean hogs closed down $0.17 at $67.10 today. Prices closed near the session low. Serious chart damage has occurred recently. Prices are in a steep three-week-old downtrend on the daily bar chart. The next upside price objective for the bulls is closing prices above chart resistance at $69.37. The next downside technical price objective for the bears is closing prices below solid technical support at last week’s low of $65.67. First resistance is seen at $68.00 and then at $68.50. First support is seen at today’s low of $66.87 and then at $66.50.
Wyckoff’s Market Rating: 3.5.
FEBRUARY PORK BELLIES
February pork bellies closed down $1.12 at $92.85 today. Prices closed nearer the session low. Bears have the near-term technical advantage. A bull flag pattern has formed on the daily bar chart. The next upside price objective for the bulls is closing prices above solid resistance at this month’s high of $96.35. The next downside price objective for the bears is closing prices below solid chart support at $91.00. First resistance is seen at $93.00 and then at $93.75. First support is seen at today’s low of $92.30 and then at last week’s low of $91.75.
Wyckoff’s Market Rating: 4.0
Source: VantagePoint Intermarket Analysis Software
