by Jim Wyckoff, Senior Analyst TraderPlanet.com
OCTOBER LIVE CATTLE
October live cattle closed down $0.40 at $107.40 yesterday. Prices closed nearer the low on mild profit- taking pressure after hitting a fresh three-week high early on yesterday. Bulls have regained some near-term technical momentum recently, including more by last Friday’s bullish weekly high close. The bulls’ next upside price objective is to push prices above solid resistance at $108.37, which would fill on the upside a downside price gap on the daily bar chart. The next downside technical objective for the bears is pushing and closing prices below solid technical support at $106.00. First resistance is seen at $108.00 and then at yesterday’s high of $108.25. First support is seen at yesterday’s low of $107.10 and then at $106.65.
Wyckoff’s Market Rating: 6.0
SEPTEMBER FEEDER CATTLE
September feeder cattle closed up $0.15 at $117.85 yesterday. Prices closed near the session high again yesterday and hit a fresh contract high, amid sharply lower corn futures prices. Bulls have solid upside technical momentum, but the market is now short-term oversold, technically, and due for a corrective pullback very soon. The next upside price objective for the feeder bulls is to push and close prices above solid technical resistance at $119.00. The next downside price objective for the bears is to produce a close below solid support at $115.40, which would fill on the downside last week’s upside price gap on the daily chart. First resistance is seen at yesterday’s contract high of $118.10 and then at $118.50. First support is seen at yesterday’s low of $117.05 and then at $116.40.
Wyckoff’s Market Rating: 8.5
OCTOBER LEAN HOGS
October lean hogs closed up $0.42 at $75.05 yesterday. Prices closed near the session high and closed at a fresh six-week high close. Bulls have the solid near-term technical advantage as a five-week-old uptrend is in place on the daily bar chart. The next upside price objective for the bulls is to push prices above solid chart resistance at the contract high of $77.40. The next downside price objective for the bears is pushing prices and closing below solid technical support at $73.00. First resistance is seen at yesterday’s high of $75.30 and then at last week’s high of $75.75. First support is seen at $74.50 and then at $74.00.
Wyckoff’s Market Rating: 7.5
FEBRUARY PORK BELLIES
February pork bellies closed up $1.17 at $91.10 yesterday. Prices closed nearer the session low. Bears have the near- term technical advantage as prices are in a 2.5-month-old downtrend on the daily bar chart. The next upside price objective for the bulls is closing prices above solid technical resistance at $74.70. The next downside price objective for the bears is pushing and closing prices below solid chart support at $89.80. First resistance is seen at $92.00 and then at yesterday’s high of $92.90. First support is seen at yesterday’s low of $90.25 and then at $89.80.
Wyckoff’s Market Rating: 3.0
