by Jim Wyckoff, Senior Analyst TraderPlanet.com
AUGUST LIVE CATTLE
August live cattle closed down $2.15 at $99.05 yesterday. Prices gapped lower on the daily bar chart, hit a fresh four-week low and closed near the session low yesterday. Serious near-term chart damage was inflicted yesterday as the market plunged on fundselling and on the big sell off in corn futures. Prices are in a three-week-old downtrend from the contract high. A 3.5-month-old uptrend on the daily bar chart has also been negated. The bulls’ next upside price objective is to push prices above solid resistance at $101.05, which would fill on the upside yesterday’s downside price gap on the daily chart. The next downside technical objective for the bears is pushing and closing prices below solid technical support at $98.00. First support is seen at $99.00 and then at $98.50. First resistance is seen at $99.50 and then at $100.00.
Wyckoff’s Market Rating: 5.0
AUGUST FEEDER CATTLE
August feeder cattle closed down $1.52 at $110.20 yesterday. Prices closed near the session low yesterday and hit a fresh three-week low. Prices are in a six-week-old downtrend on the daily bar chart. The next upside price objective for the feeder bulls is to push and close prices above solid technical resistance at $112.50. The next downside price objective for the bears is to produce a close below solid support at the June low of $107.85. First resistance is seen at $110.60 and then at $111.00. First support is seen at $110.00 and then at $109.50.
Wyckoff’s Market Rating: 5.0
AUGUST LEAN HOGS
August lean hogs closed up $0.10 at $74.75 yesterday. Prices hit a fresh three-week high and closed nearer the session low. Bulls still have upside technical momentum after price action last week produced a bullish island bottom reversal pattern on the daily bar chart. The next upside price objective for the bulls is to push prices above solid chart resistance at yesterday’s high of $75.45. The next downside price objective for the bears is pushing prices below solid technical support at $73.25, which would fill on the downside an upside price gap. First resistance is seen at $75.00 and then at $75.45. First support is seen at yesterday’s low of $74.35 and then at $73.90.
Wyckoff’s Market Rating: 6.0
AUGUST PORK BELLIES
August pork bellies closed down $0.32 at $66.05 yesterday. Prices closed nearer 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 $70.00, which would fill on the upside a downside price gap. The next downside price objective for the bears is pushing and closing prices below solid chart support at $64.00. First resistance is seen at yesterday’s high of $66.80 and then at $67.50. First support is seen at yesterday’s low of $64.80 and then at $64.00.
Wyckoff’s Market Rating: 2.5
