by Jim Wyckoff, Senior Analyst TraderPlanet.com
APRIL LIVE CATTLE
April live cattle closed down $0.30 at $95.20 today. Prices closed near the session high again today after hitting a fresh eight-month low early on today. Bears still have the solid downside technical advantage. Fundamentals are weakening amid fears of herd liquidation due to soaring corn futures prices. Cash cattle prices traded $3.00 lower late last week. The next downside technical objective for the bears is closing prices below solid support at $94.00. Bulls’ next upside price objective is to close prices above solid chart resistance at $96.50. First resistance is seen at $95.60 and then at $96.00. First support is seen at $95.00 and then at today’s low of $94.40.
Wyckoff’s Market Rating: 3.0.
MARCH FEEDER CATTLE
March feeder cattle closed down $1.05 at $101.45 today. Prices gapped lower on the daily bar chart, hit a fresh contract low and then did rebound from the low to close nearer the session high. Soaring corn prices have sunk the feeders recently and produced serious chart damage. Bears still have the near-term technical advantage. A four-month- old downtrend line is in place on the daily bar chart. The next downside price objective for the bears is to produce a close below solid support at today’s low of $99.50. The next upside price objective for the feeder bulls is to produce a close above solid resistance at $103.55. First resistance is seen at today’s high of $102.15 and then at $103.00. First support is seen at $101.00 and then at $100.00.
Wyckoff’s Market Rating: 1.0
APRIL LEAN HOGS
April lean hogs closed up $0.87 at $63.12 today. Prices closed near the session high today and hit a fresh two-week high on short covering in a bear market. Another strong up day on Tuesday would give the bulls some fresh upside technical momentum to begin to hint that a near-term low is in place. But right now the bears still have the solid near-term technical advantage. The next downside price objective for the bears is closing prices below solid technical support at the contract low of $60.90. The next upside price objective for the bulls is closing prices above solid chart resistance at $64.65, which would fill on the upside a downside price gap on the daily bar chart. First resistance is seen at $64.00 and then at $64.65. First support is seen at $62.50 and then at today’s low of $62.15.
Wyckoff’s Market Rating: 2.0.
FEBRUARY PORK BELLIES
February pork bellies closed up $0.62 at $84.62 today. Prices closed near the session high after hitting a fresh nine-week low early on. Prices are still in a six-week-old downtrend on the daily bar chart. The next upside price objective for the bulls is closing prices above solid technical resistance at $87.00. The next downside price objective for the bears is closing prices below solid chart support at today’s low of $82.80. First resistance is seen at $85.00 and then at last week’s high of $85.72. First support is seen at $84.00 and then at $83.25.
Wyckoff’s Market Rating: 2.5
