by Jim Wyckoff, Senior Analyst TraderPlanet.com
DECEMBER LIVE CATTLE
December live cattle closed down $0.40 at $95.10 today. Prices closed near the session low amid lower “outside markets.” It will be important for the bulls to keep prices above solid support at the November low of $93.80. Prices are still in a two-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to close prices above solid chart resistance at last week’s high of $96.05. The next downside technical objective for the bears is closing prices below solid support at $93.80. First resistance is seen at $95.55 and then at $96.05. First support is seen at $95.00 and then at last week’s low of $94.70.
Wyckoff’s Market Rating: 4.0.
JANUARY FEEDER CATTLE
January feeder cattle closed up $0.95 at $108.97 today. Prices closed near mid-range and did hit a fresh two-week high today on short covering and on weaker corn prices. Prices are still in a nine-week-old downtrend from the September contract high. Bears still have the near-term technical advantage. The next downside price objective for the bears is to produce a close below solid support at last week’s $107.00. The next upside price objective for the feeder bulls is to produce a close above solid resistance at $110.00. First resistance is seen at today’s high of $109.70 and then at $110.00. First support is seen at today’s low of $108.17 and then at $107.50.
Wyckoff’s Market Rating: 3.5
DECEMBER LEAN HOGS
December lean hogs closed down $1.35 $52.55 today. Prices closed near the session low and gave back much of Friday’s strong short-covering gains. Bulls quickly faded today after Friday’s bullish weekly high close, amid lower cash hog prices to start the week and talk of burdensome pork supplies heading into the Thanksgiving holiday. The bears still have the technical advantage. A steep three-month-old downtrend line is still in place on the daily bar chart. The next downside price objective for the bears is closing prices below technical support at the recent contract low of $50.95. The next upside price objective for the bulls is closing prices above solid chart resistance at last week’s high of $54.47. First resistance is seen at today’s high of $53.70 and then at $54.00. First support is seen at today’s low of $52.30 and then at $52.00.
Wyckoff’s Market Rating: 2.0
FEBRUARY PORK BELLIES
February pork bellies closed up $0.42 at $87.17 today. Prices gapped higher on the daily bar chart and hit a fresh six-week high but did closed nearer the session low. The bulls are gaining fresh upside technical momentum after Friday’s bullish weekly high close. The next upside price objective for the bulls is closing prices above solid technical resistance at today’s high of $89.00. The next downside price objective for the bears is closing prices below solid chart support at $85.00. First resistance is seen at $88.00 and then at $88.50. First support is seen at $86.75 and then at $86.00.
Wyckoff’s Market Rating: 4.5
