by Jim Wyckoff, Senior Analyst TraderPlanet.com
AUGUST LIVE CATTLE
August live cattle closed down $0.10 at $100.10 yesterday. Prices closed nearer the session high and were hit by mild profit taking yesterday after scoring a fresh contract high on Friday. Bulls still have the solid near- term technical advantage in August cattle as prices have seen an upside “breakout” from a bullish pennant pattern on the daily bar chart. The next downside technical objective for the bears is pushing and closing prices below solid technical support at the February high of $98.65. Bulls’ next upside price objective is to push and close prices above resistance at $101.00. First resistance is seen at the contract high of $100.55 and then at $101.00. First support is seen at yesterday’s low of $99.75 and then at the April high of $99.47.
Wyckoff’s Market Rating: 8.0
AUGUST FEEDER CATTLE
August feeder cattle closed up $0.85 at $110.77 yesterday. Prices closed nearer the session high yesterday and closed at a fresh seven-week high close. Bulls have gained good upside technical momentum recently. The next downside price objective for the bears is to produce a close below solid support at $109.00. The next upside price objective for the feeder bulls is to push and close prices above solid technical resistance at the April high of $111.15. First resistance is seen at $111.15 and then at $112.00. First support is seen at $110.35 and then at $110.00.
Wyckoff’s Market Rating: 7.0
AUGUST LEAN HOGS
August lean hogs closed down $0.95 at $78.15 yesterday. Prices closed near mid-range yesterday on profit-taking pressure from recent gains and on ideas cash hog prices have hit a top. No chart damage occurred yesterday and prices did close at a bullish weekly high close on Friday. However, bulls need to show some fresh power soon. A strong down day on Tuesday would raise the specter of a bearish double-top reversal pattern forming on the daily bar chart. Bulls still have the near-term technical advantage, at present. The next upside price objective for the bulls is to push prices above solid chart resistance at last week’s high of $79.30. The next downside price objective for the bears is pushing prices below solid technical support at $77.00. First resistance is seen at $78.50 and then at $79.00. First support is seen at yesterday’s low of $77.40 and then at $77.00.
Wyckoff’s Market Rating: 6.5
JULY PORK BELLIES
July pork bellies closed down $0.52 at $79.55 yesterday. Prices closed near the session low on profit taking. Bulls have the slight near-term advantage but if prices back off on Tuesday then a the specter of a bearish double-top reversal would be present on the daily chart. The next upside price objective for the bulls is closing prices above solid technical resistance at last week’s high of $81.90. The next downside price objective for the bears is pushing prices below solid chart support at $76.00. First resistance is seen at $80.00 and then at yesterday’s high of $81.00. First support is seen at $79.00 and then at $78.00.
Wyckoff’s Market Rating: 5.5
