by Jim Wyckoff, Senior Analyst TraderPlanet.com
AUGUST LIVE CATTLE
August live cattle closed down $1.15 at $97.95 yesterday. Prices gapped lower on the daily bar chart, hit a fresh two-week low and closed near the session low. Traders ignored Friday afternoon’s bullish USDA cattle on feed report, amid fresh speculative and fund selling pressure yesterday. Losses were limited yesterday on firmer boxed beef prices yesterday. No serious chart damage occurred yesterday but strong follow-through selling pressure on Tuesday would likely produce serious near-term chart damage. Bulls still have the overall near-term technical advantage. Bulls’ next upside price objective is to push and close prices above solid resistance at $98.87, 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 $97.00. First resistance is seen at $98.00 and then at yesterday’s high of $98.60. First support is seen at yesterday’s low of $97.65 and then at $97.45.
Wyckoff’s Market Rating: 6.0
AUGUST FEEDER CATTLE
August feeder cattle closed down $1.32 at $111.75 yesterday. Prices closed near the session low amid the sell off in fat cattle yesterday. No serious chart damage occurred in feeders. Bulls have the solid near-term technical advantage. The next upside price objective for the feeder bulls is to push and close prices above solid technical resistance at last week’s high of $113.77. The next downside price objective for the bears is to produce a close below solid support at $110.00. First resistance is seen at $112.00 and then at $112.50. First support is seen at yesterday’s low of $111.70 and then at $111.15.
Wyckoff’s Market Rating: 7.0
AUGUST LEAN HOGS
August lean hogs closed down $0.55 at $76.47 yesterday. Prices closed nearer the session low yesterday on profit-taking pressure and amid weaker cash hog prices to start the week. Bulls are fading. A two-week-old downtrend is in place on the daily bar chart and there is the specter of a bearish double-top reversal pattern playing out on the daily bar chart. The next upside price objective for the bulls is to push prices above solid chart resistance at $78.00. The next downside price objective for the bears is pushing and closing prices below solid technical support at $75.50. First resistance is seen at yesterday’s high of $77.05 and then at $77.70. First support is seen at yesterday’s low of $76.20 and then at $76.00.
Wyckoff’s Market Rating: 5.0
JULY PORK BELLIES
July pork bellies closed down $0.62 at $77.05 yesterday. Prices closed near mid-range and hit a fresh two-week low yesterday. Bears have the slight near-term technical advantage. The next upside price objective for the bulls is closing prices above solid technical resistance at $80.00. The next downside price objective for the bears is pushing prices below solid chart support at $75.00. First resistance is seen at yesterday’s high of $78.00 and then at $79.00. First support is seen at yesterday’s low of $76.50 and then at $76.00.
Wyckoff’s Market Rating: 4.0
