by Jim Wyckoff, Senior Analyst TraderPlanet.com


DECEMBER LIVE CATTLE

December live cattle closed up $0.10 at $105.05 yesterday. Prices closed near mid-range in quiet trading
yesterday after prices Friday hit a fresh 3.5-month low and posted a bearish weekly low close. Bears are still in technical command. 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 technical resistance at $107.00. The next downside technical objective for the bears is pushing and closing prices below solid technical support at $104.00. First resistance is seen at yesterday’s high of $105.40 and then at $105.75. First support is seen at yesterday’s low of $104.80 and then at last week’s low of $104.35.

Wyckoff’s Market Rating: 3.5.

NOVEMBER FEEDER CATTLE

November feeder cattle closed up $0.12 at $110.35 yesterday. Prices closed nearer the session low. Bears still have downside technical momentum. A bearish symmetrical triangle pattern has formed on the daily bar chart. 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 $111.60. The next downside price objective for the bears is to produce a close below solid technical support at the August low of $109.30. First resistance is seen at yesterday’s high of $110.90 and then at $111.60. First support is seen at $110.80 and then at last week’s low of $109.60.

Wyckoff’s Market Rating: 3.5

wyckoff_090908.jpg

Source: VantagePoint Intermarket Analysis Software

DECEMBER LEAN HOGS

December lean hogs closed down $0.67 at $67.50 yesterday. Prices closed near the session low and hit a fresh eight- month low yesterday. Major chart damage has occurred recently, including more yesterday, and bears have solid downside technical momentum on their side. Prices are in a steep five-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 $70.70, 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 the January low of $66.50. First resistance is seen at $68.00 and then at yesterday’s high of $68.75. First support is seen at yesterday’s low of $67.40 and then at $67.00.

Wyckoff’s Market Rating: 3.0

FEBRUARY PORK BELLIES

February pork bellies closed down $2.45 at $83.65 yesterday. Prices closed near the session low and hit a fresh contract low yesterday. Bears have the solid near-term technical advantage and gained more power yesterday. The next upside price objective for the bulls is closing prices above solid technical resistance at $88.00. The next downside price objective for the bears is pushing and closing prices below solid technical support at $80.00. First resistance is seen at $84.00 and then at $85.00. First support is seen at yesterday’s low of $83.60 and then at $83.00.

Wyckoff’s MarketRating: 1.0