by Jim Wyckoff, Senior Analyst TraderPlanet.com
OCTOBER LIVE CATTLE
October live cattle closed down $0.30 at $103.75 yesterday. Prices closed near the session low yesterday amid the general sell off in commodity markets. Prices are still in a 10-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to push and close prices above solid resistance at $106.00. The next downside technical objective for the bears is pushing and closing prices below solid technical support at $102.50. First resistance is seen at $104.00 and then at yesterday’s high of $104.55. First support is seen at last week’s low of $103.52 and then at $103.00.
Wyckoff’s Market Rating: 4.0
NOVEMBER FEEDER CATTLE
November feeder cattle closed up $1.02 at $111.30 yesterday. Prices closed near mid-range and were supported by short covering in abear marketand by sharply lower corn futures prices yesterday. Bears still have downside technical momentum. Prices are in a steep four-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 $112.55. The next downside price objective for the bears is to produce a close below solid support at last week’s low of $109.30. First resistance is seen at yesterday’s high of $111.60 and then at $112.00. First support is seen at yesterday’s low of $110.85 and then at $110.55.
Wyckoff’s Market Rating: 4.0
OCTOBER LEAN HOGS
October lean hogs closed up $1.17 at $69.60 yesterday. Prices closed near mid-range on short covering in a bear market. Prices last Friday hit a fresh five-month low. Major chart damage has occurred recently. Prices are in a steep four- week-old downtrend on the daily bar chart. The next upside price objective for the bulls is to push and close prices above solid chart resistance at $70.50, which would fill on the upside a big downside price gap. The next downside price objective for the bears is pushing prices and closing below solid technical support at last week’s low of $68.30. First resistance is seen at $70.00 and then at $70.50. First support is seen at $69.00 and then at $68.30.
Wyckoff’s Market Rating: 3.0
FEBRUARY PORK BELLIES
February pork bellies closed down $0.20 at $92.75 yesterday. Prices closed near mid-range on short covering in a bear market. Bears still have the near-term technical advantage. The next upside price objective for the bulls is closing 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 last week’s low of $87.50. First resistance is seen at yesterday’s high of $94.05 and then at $95.00. First support is seen at yesterday’s low of $92.00 and then at $91.00.
Wyckoff’s Market Rating: 2.5
