October hogs closed sharply lower on Tuesday as it extends this month's decline. The low-range close sets the stage for a steady to lower opening on Wednesday. If October extends today's decline, July's low crossing at 63.47 is the next downside target. Stochastics and the RSI areoversold and are neutral hinting that a short-term low might be in or is near. Closes above the 20-day moving average crossing at 66.78 are needed to confirm that a short-term low has been posted. Resistance begins with the 10-day moving average crossing at 65.55 then the 20-day moving average crossing at 66.78. First support is today's low crossing at 63.55 then July's low crossing at 63.47.
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.
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 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.
Jim Wyckoff became a financial journalist with
Futures World News for many years, cutting his teeth
as a reporter on the futures trading floors in
Chicago and New York, where he covered every futures
market traded in the United States at one time or
another.
Click here for full
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