by Jim Wyckoff, SeniorAnalyst TraderPlanet.com
AUGUST LIVE CATTLE
August live cattle closed down $1.60 at $103.50 yesterday. Prices closed nearer the session low yesterday. Profit taking from recent gains was featured yesterday. Prices did hit a fresh two-weeek low. No chart damage occurred yesterday. The bulls still have the near-term technical advantage, amid no solid early clues of a market top being close at hand. The bulls’ next upside price objective is to push and close prices above solid resistance at the contract high of $106.12. The next downside technical objective for the bears is pushing and closing prices below solid technical support at $102.85. First resistance is seen at $104.00 and then at yesterday’s high of $104.50. First support is seen at yesterday’s low of $103.30 and then at $103.00.
Wyckoff’s Market Rating: 7.5
AUGUST FEEDER CATTLE
August feeder cattle closed up $0.12 at $111.85 yesterday. Prices closed near mid-range yesterday. Prices did hit a fresh two-week low yesterday. Sharply lower corn prices limited selling interest yesterday. However, lower live cattle and lean hog futures prices limited the upside. Bulls are fading. The next upside price objective for the feeder bulls is to push and close prices above solid technical resistance at $113.00. The next downside price objective for the bears is to produce a close below solid support at $110.00. First resistance is seen at $112.00 and then at $112.50. First support is seen at $111.00 and then at yesterday’s low of $110.75.
Wyckoff’s Market Rating: 5.5
AUGUST LEAN HOGS
August lean hogs closed down $1.80 at $70.90 yesterday.Prices gapped sharply lower on the daily bar chart and hit a three-month low. A bearish USDA hogs and pigs report on Friday afternoon and lower cash hog prices yesterday sunk the futures. Serious near-term technical damage has been inflicted recently.However, the market is now way overdone on the downside, technically, and due for at least a solid corrective upside bounce soon. The next upside price objective for the bulls is to push prices above solid chart resistance at $72.35, which would fill on the upside yesterday’s downside price gap on the daily chart. The next downside price objective for the bears is pushing and closing prices below solid technical support at the contract low of $69.45, scored in April. First resistance is seen at yesterday’s high of $71.50 and then at $72.35. First support is seen at yesterday’s low of $70.80 and then at $70.00.
Wyckoff’s Market Rating: 1.0
AUGUST PORK BELLIES
August pork bellies closed down $1.75 at $72.75 yesterday. Prices closed near the session high. Bears still have the near-term technical advantage. The next upside price objective for the bulls is closing prices above solid technical resistance at $75.60. The next downside price objective for the bears is pushing prices below solid chart support at last week’s low of $71.20. First resistance is seen at yesterday’s high of $73.20 and then at $74.00.First support is seen at yesterday’s low of $71.60 and then at $71.00.
Wyckoff’s Market Rating: 2.5
