by Jim Wyckoff, SeniorAnalyst TraderPlanet.com
DECEMBER LIVE CATTLE
December live cattle closed up $1.62 at $105.40 yesterday. Prices closed near the session high on short covering in a bear market after prices last week hit a five-month low. Bears are still in technical command. Prices are still in an 11-week-old downtrend on the daily bar chart. Strong follow-through buying on Tuesday or Wednesday would be a clue that a near-term low is in place in cattle. Bulls’ next upside price objective is to push and close prices above solid technical resistance at $107.00. The next downside technical objective for the bears is pushing and closing prices below solid technical support at last week’s low of $102.40. First resistance is seen at yesterday’s high of $105.45 and then at $106.00. First support is seen at $105.00 and then at $104.50.
Wyckoff’s Market Rating: 3.5.
NOVEMBER FEEDER CATTLE
November feeder cattle closed up $0.12 at $108.90 yesterday. Prices closed near the session high yesterday on short covering. Prices Friday hit a fresh five-month low. Bears still have downside technical momentum. Prices are in a steep six-week-old downtrend on the daily bar chart. The next upside price objective for the feeder bulls is to push and close prices above solid technical resistance at last week’s high of $110.90. The next downside price objective for the bears is to produce a close below solid technical support at the January low of $107.10. First resistance is seen at $109.15 and then at $109.30. First support is seen at $108.25 and then at $108.00.
Wyckoff’s Market Rating: 3.0
DECEMBER LEAN HOGS
December lean hogs closed up $1.15 at $66.45 yesterday. Prices closed near the session high yesterday on short covering in a bear market after hitting a fresh 10-month low on Friday. Major chart damage has occurred recently and bears still have the solid technical advantage. Prices are in a steep six-week-old downtrend on the daily bar chart. The next upside price objective for the bulls is to push prices above solid chart resistance at $67.40, which would fill on the upside a downside price gap created on the daily chart this week. The next downside price objective for the bears is pushing prices and closing below solid technical support at last week’s low of $64.60. First resistance is seen at yesterday’s high of $66.65 and then at $67.00. First support is seen at $66.00 and then at $65.35.
Wyckoff’s Market Rating: 3.0
FEBRUARY PORK BELLIES
February pork bellies closed up $1.80 at $88.10 yesterday.Prices closed nearer the session high on more short covering in a bear market. Prices did score a bullish “outside day” up on the daily bar chart yesterday. Bears still have the near-term technical advantage. The next upside price objective for the bulls is closing prices above solid technical resistance at $90.00. The next downside price objective for the bears is pushing and closing prices below solid technical support at the contract low of $83.45. First resistance is seen at yesterday’s high of $89.30 and then at $90.00. First support is seen at $87.50 and then at $87.00.
Wyckoff’s Market Rating: 3.0
