December live cattle closed up $0.02 at $132.10 Monday. Prices closed near mid-range. The market on Friday closed at a bearish weekly low close. Traders are worried that high beef prices might be squelching consumer demand. The cattle futures bulls still have the overall near-term technical advantage. Prices are in a 5.5-month-old uptrend on the daily bar chart, but just barely now. Bulls’ next upside price “breakout” objective is to push and close prices above solid resistance at the October high of $134.70. The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at the October low of $131.40. First resistance is seen at today’s high of $132.60 and then at $133.00. First support is seen at today’s low of $131.75 and then at $131.40. Wyckoff’s Market Rating: 6.5
January feeder cattle closed up $0.37 at $163.85 Monday. Prices closed near the session high on short covering. Prices Friday hit a fresh four-week low and closed at a bearish weekly low close. The feeder bulls have faded badly, to suggest a major market top is in place. The next upside price breakout objective for the feeder bulls is to push and close prices above solid technical resistance at last week’s high of $167.20. The next downside price breakout objective for the bears is to push and close prices below solid technical support at $162.00. First resistance is seen at $164.00 and then at $164.77. First support is seen at last week’s low of $163.45 and then at $163.00. Wyckoff’s Market Rating: 5.0
December lean hogs closed down $0.02 at $88.325 Monday. Prices closed near the session low on more profit taking and weak long liquidation. Cash hog market fundamentals are weakening a bit. Also, a bearish “key reversal” down on the daily chart was confirmed last week, which is an early technical clue that a market top is in place. The hog market bulls do still have the overall near-term technical advantage. The next upside price breakout objective for the hog bulls is to push and close prices above solid chart resistance at the contract high of $92.30. The next downside price breakout objective for the bears is pushing prices below solid technical support at the October low of $85.85. First resistance is seen at today’s high of $88.75 and then at $89.00. First support is seen at $88.00 and then at $87.50. Wyckoff’s Market Rating: 6.0
