by Jim Wyckoff, Senior Analyst TraderPlanet.com
FEBRUARY LIVE CATTLE
February live cattle closed down $0.55 at $97.35 today. Prices closed near mid-range after hitting a fresh two-week low early on. A bearish USDA cattle-on-feed report Friday afternoon pressured futures prices today. However, prices did rebound a bit from session lows on higher boxed beef prices amid good movement at midday today. Still, prices Friday and today saw a bearish downside “breakout” from a sideways trading range on the daily bar chart. And 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 today’s high of $98.00. The next downside technical objective for the bears is closing prices below solid support at this month’s low of $96.65. First resistance is seen at $97.75 and then at $98.00. First support is seen at $97.00 and then at $96.65.
Wyckoff’s Market Rating: 4.0.
JANUARY FEEDER CATTLE
January feeder cattle closed down $0.32 at $108.80 today. Prices closed near the session high. Selling interest was limited by weaker corn futures prices today. Prices are still in a 10-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 $108.00. 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 $109.00 and then at $109.50. First support is seen at today’s low of $108.30 and then at $108.00.
Wyckoff’s Market Rating: 4.0
FEBRUARY LEAN HOGS
February lean hogs closed down $0.30 at $60.10 today. Prices closed near the session high today after being under solid selling pressure early on. Sellers appeared to become exhausted as prices neared strong chart support at this month’s contract low of $58.15. Cash hog prices today were weaker and that pressured the futures market. The bears still have the technical advantage. The next downside price objective for the bears is closing prices below technical support at the recent contract low of $58.15. The next upside price objective for the bulls is closing prices above solid chart resistance at this month’s high of $61.75. A push and close above the November high would be a solid technical clue that a market low is in place. First resistance is seen at $61.00 and then at $61.52. First support is seen at $59.50 and then at $59.00.
Wyckoff’s Market Rating: 2.5.
FEBRUARY PORK BELLIES
February pork bellies closed down $1.27 at $89.40 today. Prices closed nearer the session high and were pressured on profit taking after prices Friday hit a fresh 2.5-month high. The bulls still have upside technical momentum after recent solid gains. The next upside price objective for the bulls is closing prices above solid technical resistance at last week’s high of $92.25. The next downside price objective for the bears is closing prices below solid chart support at last week’s low of $87.10. First resistance is seen at $90.00 and then at today’s high of $90.50. First support is seen at $89.00 and then at $88.00.
Wyckoff’s Market Rating: 6.5
