by Jim Wyckoff, Senior Analyst TraderPlanet.com
JUNE LIVE CATTLE
June live cattle closed down $1.00 at 89.95 yesterday. Prices closed nearer the session low yesterday and hit another fresh 12.5-month low. Serious chart damage has occurred recently, including more yesterday. However, the market is now well oversold, technically, and due for a corrective upside bounce very soon. The next downside technical objective for the bears is closing prices below solid support at $88.00. Bulls’ next upside price objective is to close prices above solid chart resistance at $91.50. First resistance is seen at $90.50 and then at $91.00. First support is seen at yesterday’s low of $89.87 and then at $89.50.
Wyckoff’s Market Rating: 1.5
MAY FEEDER CATTLE
May feeder cattle closed down $1.37 at $103.75 yesterday. Prices closed nearer the session low and hit another fresh contract low yesterday. Serious near-term chart damage has been inflicted recently, including more yesterday. However, the market is way oversold on a short-term technical basis and due for a corrective bounce very soon. A steep seven-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 $102.00. The next upside price objective for the feeder bulls is to push and close prices above solid resistance at $105.05. First resistance is seen at $104.00 and then at $104.75. First support is seen at yesterday’s contract low of $103.55 and then at $103.00.
Wyckoff’s Market Rating: 1.0
JUNE LEAN HOGS
June lean hogs closed up $1.02 at $71.15 yesterday. Prices closed near the session high and were supported on short covering in a bear market. Prices hit a fresh contract low on Friday. Bears are still in technical command. A seven-week-old downtrend is in place on the daily bar chart. The next downside price objective for the bears is pushing and closing prices below solid technical support at the contract low of $70.10. The next upside price objective for the bulls is to push and close prices above solid chart resistance at $72.90, which would fill on the upside last week’s downside price gap on the daily bar chart. First resistance is seen at yesterday’s high of $71.70 and then at $72.00. First support is seen at $71.00 and then at $70.00.
Wyckoff’s Market Rating: 2.0
MAY PORK BELLIES
May pork bellies closed down $0.55 at $79.52 yesterday. Prices closed near mid-range. Serious near-term chart damage has been inflicted recently. The next upside price objective for the bulls is closing prices above solid technical resistance at $84.05, which would fill on the upside a downside price gap on the daily chart. The next downside price objective for the bears is closing prices below solid chart support at the contract low of $78.80. First resistance is seen at yesterday’s high of $80.85 and then at $81.25. First support is seen at the contract low of $78.80 and then at $78.00.
Wyckoff’s Market Rating: 1.0
