by Jim Wyckoff, Senior Analyst TraderPlanet.com
APRIL LIVE CATTLE
April live cattle closed up $0.40 at $97.35 today. Prices closed near the session high today on short covering. Prices are in a well-defined trading range at lower price levels, bound by strong technical support at the November and December lows of $96.55, and by strong overhead resistance at last week’s high of $99.20. The bears have the slight near-term technical advantage following Friday’s bearish weekly low close. The next downside technical objective for the bears is closing prices below solid support at $96.55. Bulls’ next upside price objective is to close prices above solid chart resistance at $98.00. First resistance is seen at $97.50 and then at $98.00. First support is seen at last week’s low of $96.90 and then at $96.55.
Wyckoff’s Market Rating: 4.5.
MARCH FEEDER CATTLE
March feeder cattle closed up $0.10 at $100.42 today. Prices closed near mid-range today after hitting a fresh 11-month low. Feeder bears have the solid technical advantage, but the market is near-term overdone on the downside, technically. 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 $100.00. The next upside price objective for the feeder bulls is to produce a close above solid resistance at $102.00. First resistance is seen at $101.00 and then at $101.50. First support is seen at $100.00 and then at today’s low of $99.75.
Wyckoff’s Market Rating: 1.5
APRIL LEAN HOGS
April lean hogs closed down $0.70 at $55.70 today. Prices closed nearer the session low and hit another fresh contract low today. 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 $55.00. The next upside price objective for the bulls is closing prices above solid chart resistance at $58.00. First resistance is seen at today’s high of $56.40 and then at $57.00. First support is seen at today’s contract low of $55.40 and then at $55.00.
Wyckoff’s Market Rating: 1.0.
FEBRUARY PORK BELLIES
February pork bellies closed up $0.07 at $84.20 today. Prices closed near mid-range and did hit a fresh two-month low today. 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 $82.50. First resistance is seen at today’s high of $85.00 and then at $86.00. First support is seen at today’s low of $83.25 and then at $83.00.
Wyckoff’s Market Rating: 2.5
