by Jim Wyckoff, Senior Analyst TraderPlanet.com
DECEMBER LIVE CATTLE
December live cattle closed up $0.75 at $97.97 today. Prices closed near the session high and hit a fresh two-week high today on short covering and fresh speculator buying amid the ongoing broad rally in raw commodity markets. Strong gains in boxed beef prices today also fueled the cattle bulls. Recent price action does strongly suggest a near-term market low is in place. The next downside technical objective for the bears is closing prices below solid support at $96.50. Bulls’ next upside price objective is to close prices above solid chart resistance at $99.00. First resistance is seen at today’s high of $98.10 and then at $98.50. First support is seen at today’s low of $97.47 and then at $97.00.
Wyckoff’s Market Rating: 6.0.
NOVEMBER FEEDER CATTLE
November feeder cattle closed down $0.25 at $113.22 today. Prices closed nearer the session high and were pressured by strong gains in corn futures today. Prices are still in a five-week-old downtrend from the September contract high. The next downside price objective for the bears is to produce a close below solid support at this month’s low of $112.40. The next upside price objective for the feeder bulls is to produce a close above solid resistance at last week’s high of $114.60. First resistance is seen at today’s high of $113.47 and then at $114.00. First support is seen at today’s low of $112.70 and then at $112.40.
Wyckoff’s Market Rating: 5.0
Source: VantagePoint Intermarket Analysis Software
DECEMBER LEAN HOGS
December lean hogs closed up $0.05 at $58.32 today. Prices closed near mid-range and did poked to a fresh 12-month low today. Friday’s big downside “breakout” in the market, including a bearish weekly low close, have given the bears added downside technical momentum. A steep 2.5-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 $57.00. The next upside price objective for the bulls is closing prices above solid chart resistance at $60.00. First resistance is seen at today’s high of $58.90 and then at $59.50. First support is seen at today’s low of $58.00 and then at $57.50.
Wyckoff’s Market Rating: 2.5.
FEBRUARY PORK BELLIES
February pork bellies closed down $0.45 at $85.25 today. Prices closed nearer the session low and matched last Friday’s contract low today. The bears still have the near- term technical advantage. The next upside price objective for the bulls is closing prices above solid resistance at last week’s high of $88.25. The next downside price objective for the bears is closing prices below solid chart support at today’s low and the contract low of $84.82. First resistance is seen at today’s high of $86.30 and then at $87.00. First support is seen at $84.82 and then at $84.00.
Wyckoff’s Market Rating: 1.0.
Source: VantagePoint Intermarket Analysis Software