by Jim Wyckoff, Senior Analyst TraderPlanet.com

FEBRUARY HOGS

February hogs closed lower on Monday and below the 10-day moving average crossing at 62.27. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are turning bearish signaling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing at 61.14 would confirm that a short-term top has been posted. If February renews last month’s rally, the 38% retracement level of the August-November decline crossing at 64.02 is the next upside target. Resistance begins with today’s high crossing at 62.50 then the last Thursday’s high crossing at 63.75. First support is the 20-day moving average crossing at 61.14 then today’s low crossing at 61.10.

FEBRUARY BELLIES

February bellies closed lower on Monday as it consolidates below the 10-day moving average crossing at 91.66. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain bearish hinting that that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 89.44 would confirm that a short-term top has been posted. If February renews the rally off October’s low, the reaction high crossing at 96.35 is the next upside target.

FEBRUARY CATTLE

February cattle posted an inside day with a higher close on Monday as it consolidated some of last Friday’s decline but remains below the early-November low crossing at 96.65. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are oversold but remain bearish signaling that sideways to lower prices are possible near-term. If February extends last week’s decline, the reaction low crossing at 95.45 is the next downside target. Closes above the 20-day moving average crossing at 97.87 would confirm that a short-term low has been posted.

MARCH FEEDER CATTLE

March Feeder cattle closed higher on Monday as it consolidated some of last Friday’s decline but remains below the 20-day moving average crossing at 109.57. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible. If March extends last week’s decline, November ‘s low crossing at 107.40 is the next downside target. Closes above the 10-day moving average crossing at 110.50 would temper the near-term bearish outlook in the market.