by Jim Wyckoff, Senior Analyst TraderPlanet.com
APRIL LIVE CATTLE
April live cattle closed up $0.10 at $94.35 yesterday. Prices closed nearer the session high yesterday on short covering in a bear market. U.S. economic recession worries have hit the livestock futures markets recently. However, last week’s price action could have produced a bullish selling “exhaustion tail,” whereby selling interest dried up at lower price levels and then prices drifted back higher. Last week’s low of $92.30 is very strong technical support. Bears still have the downside technical advantage. The next downside technical objective for the bears is closing prices below solid support at $92.30. Bulls’ next upside price objective is to close prices above solid chart resistance at $95.00. First resistance is seen at yesterday’s high of $94.60 and then at $95.00. First support is seen at $94.00 and then at yesterday’s low of $93.52.
Wyckoff’s Market Rating: 2.5
MARCH FEEDER CATTLE
March feeder cattle closed up $0.05 at $102.35 yesterday. Prices closed nearer the session low yesterday and bulls did not get much help from lower corn futures prices. 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 the contract low of $99.30. The next upside price objective for the feeder bulls is to push prices above solid resistance at $103.55, to fill on the upside a downside price gap. First resistance is seen at $103.00 and then at $103.55. First support is seen at yesterday’s low of $102.00 and then at $101.50.
Wyckoff’s Market Rating: 1.5
APRIL LEAN HOGS
April lean hogs closed down $0.17 at $62.25 yesterday. Prices closed near mid-range yesterday. Bears are still in technical control of the hog market. 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 last week’s high of $63.85. First resistance is seen at $63.00 and then at $63.85. First support is seen at yesterday’s low of $61.65 and then at $61.45.
Wyckoff’s Market Rating: 2.0
FEBRUARY PORK BELLIES
February pork bellies closed down $0.25 at $83.95 yesterday. Prices closed near mid-range yesterday. Bears still have the technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. The next upside price objective for the bulls is closing prices above solid technical resistance at last week’s high of $86.65. The next downside price objective for the bears is closing prices below solid chart support at last week’s low of $82.60. First resistance is seen at $85.00 and then at $85.72. First support is seen at $83.50 and then at $83.00.
Wyckoff’s Market Rating: 2.5
