by Jim Wyckoff, Senior Analyst TraderPlanet.com
JUNE LIVE CATTLE
June live cattle closed down $0.50 at $91.50 yesterday. Prices again closed nearer the session low and hit a fresh 52-week low yesterday. Prices sunk yesterday after cash cattle trading took place last Friday at $3.00 lower than the previous week’s cash trade. Serious chart damage has occurred recently, including more yesterday. However, the market is way oversold on a short-term technical basis and due for at least a corrective bounce very soon. Bulls’ next upside price objective is to close prices above solid chart resistance at $92.60. The next downside technical objective for the bears is closing prices below solid support at $90.00. First resistance is seen at $92.00 and then at $92.60. First support is seen at yesterday’s low of $91.27 and then at $91.00.
Wyckoff’s Market Rating: 3.5
MAY FEEDER CATTLE
May feeder cattle closed down $1.40 at $106.15 yesterday. Prices hit a fresh seven-week low and closed near the session low yesterday. Serious near-term chart damage has been inflicted recently, including more yesterday. A steep five- week-old downtrend 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 the contract low of $105.05. The next upside price objective for the feeder bulls is to push and close prices above solid resistance at $108.00. First resistance is seen at $106.80 and then at $107.00. First support is seen at yesterday’s low of $106.07 and then at $105.05.
Wyckoff’s Market Rating: 2.0
JUNE LEAN HOGS
June lean hogs closed down $0.20 at $73.90 yesterday. Prices closed nearer the session low. Serious near-term chart damage has been inflicted recently. Bears are in firm technical command. The next downside price objective for the bears is pushing and closing prices below solid technical support at last week’s low of $72.60. The next upside price objective for the bulls is to push and close prices above solid chart resistance at $75.00. First resistance is seen at yesterday’s high of $74.60 and then at $75.00. First support is seen at yesterday’s low of $73.50 and then at $73.00.
Wyckoff’s Market Rating: 3.5
MAY PORK BELLIES
May pork bellies closed down the $3.00 limit at $81.05 yesterday. Prices hit a fresh contract low yesterday. Serious near- term chart damage has been inflicted recently, including more yesterday. The next upside price objective for the bulls is closing prices above solid technical resistance at $84.05, which would fill on the upside yesterday’s downside price gap on the daily chart. The next downside price objective for the bears is closing prices below solid chart support at $80.00. First resistance is seen at $82.00 and then at yesterday’s high of $83.00. First support is seen at $81.00 and then at $80.00.
Wyckoff’s Market Rating: 1.0
