by Jim Wyckoff, Senior Analyst TraderPlanet.com

AUGUST LIVE CATTLE

August live cattle closed up $0.45 at $90.05 today. Prices closed near the session high on some short covering and bargain-hunting buying on ideas that a market low could be close at hand. Sharp losses in feeders did limit buying interest somewhat in the fat cattle futures today. Prices are still in a steep downtrend from the May high, and bulls have more near-term work to accomplish soon. The bears’ next downside price objective is closing prices below solid chart support at last week’s low of $89.45. The bulls’ next upside technical price objective is closing prices above solid chart resistance at $91.00. First resistance is seen at today’s high of $90.20 and then at $90.50. First support is seen at $89.45 and then at $89.00.

Wyckoff’s Market Rating: 5.0.

AUGUST FEEDER CATTLE

August feeder cattle closed down $0.60 at $107.60 today. Prices gapped lower on the daily bar chart, hit a fresh three-month low and did rebound from the low to close nearer the session high. Big gains in corn futures pressured feeders today and some near-term chart damage was inflicted. Prices are in a downtrend from the May high. But my bias is that there is not strong downside potential at present prices in feeders. The next upside price objective for the feeder bulls is to produce a close above solid chart resistance at $110.00. The next downside price objective for the bears is closing prices below solid support at $106.00. First resistance is seen at $108.10 and then at $109.00. First support is seen at today’s low of $106.85 and then at $106.00.

Wyckoff’s Market Rating: 5.0

AUGUST LEAN HOGS

August lean hogs closed up $0.25 at $73.62 today. Prices closed nearer the session high and scored a bullish “outside day” up on the daily bar chart today. My bias is that there is not strong downside price potential in the hog futures market with prices at current levels. The next upside price objective for the bulls is closing prices above solid chart resistance at this month’s high of $75.25. The next downside price objective for the bears is closing prices below solid technical support at the May low of $72.45. First resistance is seen at today’s high of $73.85 and then at $74.00. First support is seen at $73.25 and then at today’s low of $73.00.

Wyckoff’s Market Rating: 5.5.

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Source: VantagePoint Intermarket Analysis Software

JULY PORK BELLIES

July pork bellies closed up $0.70 at $96.05 today. Prices closed near the session high on short covering in a bear market. Serious chart damage has occurred recently. Bears still have downside technical momentum. A three-month-old downtrend line is still in place on the daily bar chart. The next upside price objective for the bulls is closing prices above solid resistance at $98.00. The next downside price objective for the bears is closing prices below solid chart support at last week’s low of $94.00. First resistance is $97.00 and then at $97.50. First support is seen at today’s low of $94.00 and then at $94.50.

Wyckoff’s Market Rating: 3.0

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