by Jim Wyckoff, Senior Analyst, TraderPlanet.com
DECEMBER LIVE CATTLE
December live cattle closed up $0.55 at $93.25 yesterday. Prices closed nearer the session high yesterday and hit a fresh three-week high on short covering. While the bears do still have the overall near-term technical advantage, the bulls have gained some upside momentum recently, but have more work to do to better suggest a market low is in place. Prices are still trading below a four-month-old downtrend line on the daily bar chart. Bulls’ next upside price objective is to push prices above solid technical resistance at $96.00. The next downside technical objective for the bears is pushing and closing prices below solid technical support at $90.00. First resistance is seen at yesterday’s high of $93.80 and then at $94.00. First support is seen at $93.00 and then at yesterday’s low of $92.50.
Wyckoff’s Market Rating: 3.5
NOVEMBER FEEDER CATTLE
November feeder cattle closed up $1.07 at $99.70 yesterday. Prices closed near the session high yesterday and closed at a fresh three-week high close on more short covering in a bear market. Bears still have the overall near-term technical advantage, but the bulls have gained technical momentum recently. Prices are still in a three-month-old downtrend on the daily bar chart, but now just barely. The next upside price objective for the feeder bulls is to push prices above solid technical resistance at $100.60, which would fill on the upside a downside price gap on the daily chart. The next downside price objective for the bears is to produce a close below solid technical support at $96.00. First resistance is seen at $100.00 and then at $100.60. First support is seen at yesterday’s low of $98.85 and then at $98.00.
Wyckoff’s Market Rating: 3.0
DECEMBER LEAN HOGS
December lean hogs closed down $0.40 at $54.40 yesterday. Prices closed near the session low again yesterday and hit a fresh contract low. Hog bears still have the near-term technical advantage, amid bearish cash market fundamentals. Prices are still in a three-month-old downtrend on the daily bar chart. The next upside price objective for the bulls is to push prices above solid chart resistance at $57.40, which would fill on the upside a downside price gap on the daily chart. The next downside price objective for the bears is pushing prices and closing below solid technical support at $52.00. First resistance is seen at yesterday’s high of $55.20 and then at $56.00. First support is seen at yesterday’s contract low of $54.10 and then at $53.50.
Wyckoff’s Market Rating: 1.0
FEBRUARY PORK BELLIES
February pork bellies closed down $0.87 at $83.90 yesterday. Prices closed nearer the session low yesterday and scored a fresh contract low. Bears still have the near-term technical advantage. Prices are in a six-week-old downtrend on the daily bar chart. The next upside price objective for the bulls is pushing prices above solid technical resistance at $86.00. The next downside price objective for the bears is pushing and closing prices below solid technical support at $80.00. First resistance is seen at $85.00 and then at yesterday’s high of $85.50. First support is seen at yesterday’s contract low of $82.95 and then at $82.50.
Wyckoff’s Market Rating: 1.0
