August live cattle closed up $0.35 at $101.65 yesterday. Prices closed nearer the session high and hit a fresh contract high on fund buying and recent good demand for boxed beef. Bulls still have the overall near-term technical advantage and gained more momentum yesterday. There are no early warning signals that a market top is close at hand, but the market is short-term overbought, technically, and due for a corrective pullback soon. Bulls' next upside price objective is to push and close prices above solid resistance at the contract high of $103.00. The next downside technical objective for the bears is pushing and closing prices below solid technical support at $100.00. First resistance is seen at yesterday's contract high of $102.12 and then at $102.50. First support is seen at $101.00 and then at yesterday's low of $100.70.
Wyckoff's Market Rating: 8.5
AUGUST FEEDER CATTLE
August feeder cattle closed up $0.07 at $115.30 yesterday. Prices closed near the session low after hitting a fresh contract high yesterday. Profit-taking pressure did back prices off from yesterday's high. Bulls still have the solid near-term technical advantage, amid no technical clues of a market top being close at hand. The next upside price objective for the feeder bulls is to push and close prices above solid technical resistance at yesterday's contract high of $116.50. The next downside price objective for the bears is to produce a close below solid support at $112.50. First resistance is seen at $116.00 and then at yesterday's contract high of $116.50. First support is seen at $115.00 and then at $114.50.
August lean hogs closed down $0.95 at $77.35 yesterday. Prices closed nearer the session low yesterday. Trading action has turned choppy recently and prices are now trapped in a sideways trading range between the May high of $79.30 and last week's low of $76.20. The next upside price objective for the bulls is to push prices above solid chart resistance at last week's highof $78.40. The next downside price objective for the bears is pushing and closing prices below solid technical support at last week's low of $76.20. First resistance is seen at $78.00 and then at $78.40. First support is seen at yesterday's low of $76.95 and then at $76.20.
Wyckoff's Market Rating: 5.5
JULY PORK BELLIES
July pork bellies closed down $1.32 at $74.65 yesterday. Prices closed nearer the session low yesterday and hit a fresh four- week low. Bears have the near-term technical advantage and gained more momentum yesterday. The next upside price objective for the bulls is closing prices above solid technical resistance at $77.50. The next downside price objective for the bears is pushing prices below solid chart support at $72.50. First resistance is seen at $75.00 and then at yesterday's high of $76.00. First support is seen at yesterday's low of $74.05 and then at $73.00.
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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