by Jim Wyckoff, Senior Analyst TraderPlanet.com
AUGUST LIVE CATTLE
August live cattle closed up $0.35 at $101.65 yesterday. Prices closed nearer the session high and hit a fresh contract high on fund buying and recent good demand for boxed beef. Bulls still have the overall near-term technical advantage and gained more momentum yesterday. There are no early warning signals that a market top is close at hand, but the market is short-term overbought, technically, and due for a corrective pullback soon. Bulls’ next upside price objective is to push and close prices above solid resistance at the contract high of $103.00. The next downside technical objective for the bears is pushing and closing prices below solid technical support at $100.00. First resistance is seen at yesterday’s contract high of $102.12 and then at $102.50. First support is seen at $101.00 and then at yesterday’s low of $100.70.
Wyckoff’s Market Rating: 8.5
AUGUST FEEDER CATTLE
August feeder cattle closed up $0.07 at $115.30 yesterday. Prices closed near the session low after hitting a fresh contract high yesterday. Profit-taking pressure did back prices off from yesterday’s high. Bulls still have the solid near-term technical advantage, amid no technical clues of a market top being close at hand. The next upside price objective for the feeder bulls is to push and close prices above solid technical resistance at yesterday’s contract high of $116.50. The next downside price objective for the bears is to produce a close below solid support at $112.50. First resistance is seen at $116.00 and then at yesterday’s contract high of $116.50. First support is seen at $115.00 and then at $114.50.
Wyckoff’s Market Rating: 8.5
AUGUST LEAN HOGS
August lean hogs closed down $0.95 at $77.35 yesterday. Prices closed nearer the session low yesterday. Trading action has turned choppy recently and prices are now trapped in a sideways trading range between the May high of $79.30 and last week’s low of $76.20. The next upside price objective for the bulls is to push prices above solid chart resistance at last week’s highof $78.40. The next downside price objective for the bears is pushing and closing prices below solid technical support at last week’s low of $76.20. First resistance is seen at $78.00 and then at $78.40. First support is seen at yesterday’s low of $76.95 and then at $76.20.
Wyckoff’s Market Rating: 5.5
JULY PORK BELLIES
July pork bellies closed down $1.32 at $74.65 yesterday. Prices closed nearer the session low yesterday and hit a fresh four- week low. Bears have the near-term technical advantage and gained more momentum yesterday. The next upside price objective for the bulls is closing prices above solid technical resistance at $77.50. The next downside price objective for the bears is pushing prices below solid chart support at $72.50. First resistance is seen at $75.00 and then at yesterday’s high of $76.00. First support is seen at yesterday’s low of $74.05 and then at $73.00.
Wyckoff’s Market Rating: 2.5
