August live cattle closed down $0.10 at $100.10 yesterday. Prices closed nearer the session high and were hit by mild profit taking yesterday after scoring a fresh contract high on Friday. Bulls still have the solid near- term technical advantage in August cattle as prices have seen an upside "breakout" from a bullish pennant pattern on the daily bar chart. The next downside technical objective for the bears is pushing and closing prices below solid technical support at the February high of $98.65. Bulls' next upside price objective is to push and close prices above resistance at $101.00. First resistance is seen at the contract high of $100.55 and then at $101.00. First support is seen at yesterday's low of $99.75 and then at the April high of $99.47.
Wyckoff's Market Rating: 8.0
AUGUST FEEDER CATTLE
August feeder cattle closed up $0.85 at $110.77 yesterday. Prices closed nearer the session high yesterday and closed at a fresh seven-week high close. Bulls have gained good upside technical momentum recently. The next downside price objective for the bears is to produce a close below solid support at $109.00. The next upside price objective for the feeder bulls is to push and close prices above solid technical resistance at the April high of $111.15. First resistance is seen at $111.15 and then at $112.00. First support is seen at $110.35 and then at $110.00.
August lean hogs closed down $0.95 at $78.15 yesterday. Prices closed near mid-range yesterday on profit-taking pressure from recent gains and on ideas cash hog prices have hit a top. No chart damage occurred yesterday and prices did close at a bullish weekly high close on Friday. However, bulls need to show some fresh power soon. A strong down day on Tuesday would raise the specter of a bearish double-top reversal pattern forming on the daily bar chart. Bulls still have the near-term technical advantage, at present. The next upside price objective for the bulls is to push prices above solid chart resistance at last week's high of $79.30. The next downside price objective for the bears is pushing prices below solid technical support at $77.00. First resistance is seen at $78.50 and then at $79.00. First support is seen at yesterday's low of $77.40 and then at $77.00.
Wyckoff's Market Rating: 6.5
JULY PORK BELLIES
July pork bellies closed down $0.52 at $79.55 yesterday. Prices closed near the session low on profit taking. Bulls have the slight near-term advantage but if prices back off on Tuesday then a the specter of a bearish double-top reversal would be present on the daily chart. The next upside price objective for the bulls is closing prices above solid technical resistance at last week's high of $81.90. The next downside price objective for the bears is pushing prices below solid chart support at $76.00. First resistance is seen at $80.00 and then at yesterday's high of $81.00. First support is seen at $79.00 and then at $78.00.
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 including commodity futures trading in Softs and Metals. Click here for full
bio >>
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