by Jim Wyckoff, SeniorAnalyst TraderPlanet.com
DECEMBER LIVE CATTLE
December live cattle closed down the $3.00 trading limit at $94.77 yesterday. Prices gapped lower on the daily bar chart and hit a fresh 12-month low. More serious near-term technical damage was inflicted yesterday, amid global recession worries that spell less demand for beef. Bearish “outside markets”–sharply lower crude oil prices and a stronger U.S. dollar–also weighed on the market yesterday. Prices are still in a 14-week-old downtrend on the daily bar chart. Bears still have the solid near-term technical advantage. However, the market is short-term oversold and due for a corrective bounce soon. Bulls’ next upside price objective is to push and close prices above solid technical resistance at $97.50, which would fill on the upside yesterday’s downside price gap on the daily bar chart. 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 $95.00 and then at yesterday’s high of $95.77. First support is seen at $94.50 and then at $94.00.
Wyckoff’s Market Rating: 1.0.
NOVEMBER FEEDER CATTLE
November feeder cattle closed down the $3.00 limit at $97.80 yesterday. Prices gapped lower on the daily bar chart and hit a fresh contract low again yesterday. Serious chart damage has occurred recently, including more yesterday. Bears still have the solid near-term technical advantage. Prices are still in a steep two-month-old downtrend on the daily bar chart. However, the market is still oversold and due for a corrective bounce soon. 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 yesterday’s 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 $95.00. First resistance is seen at $98.00 and then at yesterday’s high of $99.10. First support is seen at $97.00 and then at $96.50.
Wyckoff’s Market Rating: 1.0
DECEMBER LEAN HOGS
December lean hogs closed down $0.92 at $59.95 yesterday. Prices gapped lower on the daily bar chart and hit another fresh contract low. Prices did close near the session high. Hog bears still have the solid technical advantage. Prices are also still in a steep two-month-old downtrend on the daily bar chart. However, the market is still short-term oversold and due for a corrective bounce soon. The next upside price objective for the bulls is to push prices above solid chart resistance at $63.00. The next downside price objective for the bears is pushing prices and closing below solid technical support at $57.50. First resistance is seen at $60.80 and then at $61.00. First support is seen at $59.00 and then at yesterday’s contract low of $58.70.
Wyckoff’s Market Rating: 1.0
FEBRUARY PORK BELLIES
February pork bellies closed down $1.40 at $92.70 yesterday. Prices closed near mid-range yesterday. A bear flag has now formed on the daily chart. The next upside price objective for the bulls is pushing prices above solid technical resistance at $95.00. The next downside price 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 $93.55 and then at $94.00. First support is seen at $92.00 and then at yesterday’s low of $91.10.
Wyckoff’s Market Rating: 2.5
