by Jim Wyckoff, Senior Analyst TraderPlanet.com
OCTOBER HOGS
FEBRUARY BELLIES
February bellies closed down $1.62 at $86.92. February bellies closed sharply lower on Tuesday and spiked below key support crossing at 86.25. A short covering rally tempered losses however; the low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are neutral to bullish hinting that sideways to higher prices are still possible near-term. Closes above the 20-day moving average crossing at 90.14 are needed to confirm that a double bottom with August’s low has been posted. If February extends the decline off August’s high, weekly support crossing at 85.10 is the next downside target.
Source: VantagePoint Intermarket Analysis Software
OCTOBER CATTLE
October cattle closed up $0.67 at 95.65. October cattle closed higher on Tuesday as they consolidated some of this month’s decline. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are oversold and are turning bullish hinting that a short-term low might be in or is near. Closes above the 20-day moving average crossing at 96.40 are needed to confirm that a short-term low has beenposted. If October extends this month’s decline, August’s low crossing at 93.62 is the next downside target.
NOVEMBER FEEDER CATTLE
November feeder cattle closed up $0.85 at $116.47. November Feeder cattle closed higher on Tuesday as it consolidated some of Monday’s decline. Today’s high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If November extends this week’s decline, August’s low crossing at 114.70 is the next downside target. Closes above the 20-day moving average crossing at 118.075 would temper the near-term bearish outlook in the market. Closes above the reaction high crossing at 119.67 are needed to renew this summer’s rally.