by Jim Wyckoff, SeniorAnalyst TraderPlanet.com
AUGUST LIVE CATTLE
August live cattle closed down $1.50 at $102.30 yesterday. Prices gapped lower on the daily bar chart, hit a fresh three-week low and closed near the session low yesterday. More profit taking from recent gains was featured yesterday. Bearish “outside markets”–lower grains, crude oil and a firmer U.S. dollar–pressured the cattle yesterday. No serious chart damage has occurred during the recent declines. However, strong follow-through selling pressure on Tuesday would likely begin to produce some chart damage. The bulls do still have the near-term technical advantage, but have faded a bit. The bulls’ next upside price objective is to push prices above solid resistance at $103.55, which would fill on the upside yesterday’s downside price gap. The next downside technical objective for the bears is pushing and closing prices below solid technical support at $101.00. First support is seen at yesterday’s low of $102.05 and then at $101.50. First resistance is seen at $103.00 and then at yesterday’s high of $103.45.
Wyckoff’s Market Rating: 6.5
AUGUST FEEDER CATTLE
August feeder cattle closed down $0.55 at $111.02 yesterday. Prices closed nearer the session low yesterday and scored a bearish “outside day” down on the daily bar chart. 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 $111.50 and then at $112.00. First support is seen at yesterday’s low of $110.60 and then at $110.00.
Wyckoff’s Market Rating: 5.5
AUGUST LEAN HOGS
August lean hogs closed down $0.62 at $70.32 yesterday. Prices closed near the session low yesterday. Serious near-term technical damage has been inflicted recently. Bears still have downside technical momentum amid weak cash hog market fundamentals, including lower cash hog prices recently. 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 a big downside price gap on the daily bar chart. The next downside price objective for the bears is pushing and closing prices below solid technical support at last week’s low of $70.20. First resistance is seen at $71.00 and then at yesterday’s high of $71.25. First support is seen at $70.20 and then at $70.00.
Wyckoff’s Market Rating: 1.5
AUGUST PORK BELLIES
August pork bellies closed down the $3.00 limit at $64.05 yesterday. Prices hit another fresh contract low amid very bearish cash market fundamentals. Bears still have the near-term technical advantage, but the market is short-term oversold at present and due for a corrective bounce soon. The next upside price objective for the bulls is closing prices above solid technical resistance at $69.00. The next downside price objective for the bears is pushing prices below solid chart support at $60.00. First resistance is seen at $65.00 and then at $66.00. First support is seen at $64.00 and then at $63.00.
Wyckoff’s Market Rating: 1.0
