by Jim Wyckoff, Senior Analyst TraderPlanet.com
FEBRUARY LIVE CATTLE
February live cattle closed up $0.20 at $95.67 today. Prices closed nearer the session high on short covering in a bear market. Prices late last week hit a fresh 7.5-month low. Serious near-term technical damage has been inflicted recently. Bears have the solid near-term technical advantage to suggest still more on the downside in the near term. An 11-week-old downtrend is still in place from the September high. The next downside technical objective for the bears is closing prices below solid support at last week’s low of $95.10. Bulls’ next upside price objective is to close prices above solid chart resistance at $96.65. First resistance is seen at $96.00 and then at $96.65. First support is seen at today’s low of $95.25 and then at $95.10.
Wyckoff’s Market Rating: 3.0.
MARCH FEEDER CATTLE
March feeder cattle closed down $0.15 at $103.65 today. Prices closed near mid-range and did hit a fresh 9.5-month low today. Serious chart damage has occurred recently. The recent rally in corn futures has been bearish for the feeder futures market. Feeder bears still have solid downside technical momentum on their side. The next downside price objective for the bears is to produce a close below solid support at today’s low of $103.00. The next upside price objective for the feeder bulls is to produce a close above solid resistance at $105.00. First resistance is seen at today’s high of $104.10 and then at $104.50. First support is seen at $103.00 and then at $102.50.
Wyckoff’s Market Rating: 2.5
FEBRUARY LEAN HOGS
February lean hogs closed down $0.92 at $59.25 today. Prices closed near the session low and hit a fresh four- week low today. Bulls are fading badly. The next downside price objective for the bears is closing prices below solid technical support at the November low of $58.15. The next upside price objective for the bulls is closing prices above solid chart resistance at $61.50. First resistance is seen at $60.00 and then at $60.50. First support is seen at today’s low of $59.20 and then at $58.50.
Wyckoff’s Market Rating: 2.0.
FEBRUARY PORK BELLIES
February pork bellies closed down $0.57 at $88.20 today. Prices closed near the session high after hitting a fresh five-week low early on. Chart damage has occurred recently. Prices are in a three-week-old downtrend on the daily bar chart. The next upside price objective for the bulls is closing prices above solid technical resistance at $90.00. The next downside price objective for the bears is closing prices below solid chart support at $86.75. First resistance is seen at $89.00 and then at $89.50. First support is seen at today’s low of $87.60 and then at $87.00.
Wyckoff’s Market Rating: 4.0
