August live cattle closed down $1.22 at $98.97 yesterday. Prices gapped lower on the daily bar chart and closed near the session low. Profit-taking was featured yesterday amid some worries about cash market fundamentals. No serious chart damage occurred yesterday but solid follow- through selling pressure on Tuesday would produce some near-term technical damage to begin to suggest that a market top is in place. But right now the bulls still have the near-term technical advantage. Bulls' next upside price objective is to push prices above solid resistance at $100.02, which would fill on the upside yesterday's downside price gap. The next downside technical objective for the bears is pushing and closing prices below solid technical support at $97.65. First resistance is seen at yesterday's high of $99.85 and then at $100.02. First support is seen at yesterday's low of $98.90 and then at $98.50.
Wyckoff's Market Rating: 7.0
AUGUST FEEDER CATTLE
August feeder cattle closed down $1.57 at $110.67 yesterday. Prices closed near the session low and hit a fresh four- week low yesterday. Soaring corn futures prices have pressured feeders and serious near-term chart damage has occurred to suggest a market top is in place. The next upside price objective for the feeder bulls is to push and close prices above solid technical resistance at $113.00. The next downside price objective for the bears is to produce a close below solid support at $109.00. First resistance is seen at the April high of $111.15 and then at yesterday's high of $111.55. First support is seen at yesterday's low of $110.60 and then at $110.00.
August lean hogs closed down $1.97 at $74.75 yesterday. Prices gapped lower on the daily bar chart and closed nearer the session low yesterday. Prices also hit a fresh five-week low and scored a bearish downside "breakout" from a sideways trading range. Bears have gained the near-term technical advantage in hogs. The next upside price objective for the bulls is to push prices above solid chart resistance at $76.60, which would fill on the upside yesterday's downside price gap. The next downside price objective for the bears is pushing and closing prices below solid technical support at the May spike low of $74.00. First resistance is seen at $75.00 and then at $75.50. First support is seen at yesterday's low of $74.50 and then at $74.00.
Wyckoff's Market Rating: 4.0
JULY PORK BELLIES
July pork bellies closed down $1.00 at $72.20 yesterday. Prices closed nearer the session low yesterday. Bears still have the near-term technical advantage. The next upside price objective for the bulls is closing prices above solid technical resistance at $75.00. The next downside price objective for the bears is pushing prices below solid chart support at the contract low scored in April, at $68.02. First resistance is seen at yesterday's high of $73.35 and then at $74.00. First support is seen at yesterday's low of $71.60 and then at $71.00.
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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