Tuesday, February 01, 2011
Livestock Futures Commentary from Jim Wyckoff
LIVESTOCK: April live cattle closed up $1.27 at
$114.05 today. Prices closed near mid-range today and hit
a fresh four-week high. The key "outside markets" were in
a bullish posture for the cattle market today, as the
U.S. dollar index was weaker, crude oil prices were
sharply higher and the U.S. stock indexes were firmer.
The cattle bulls have the overall near-term technical
advantage and gained fresh upside momentum today. Cattle
market bulls' next upside price objective is to push and
close prices above solid technical resistance at the
contract high of $116.30. The next downside technical
objective for the bears is pushing prices below solid
technical support at last week's low of $111.07. First
resistance is seen at $114.50 and then at today's high of
$115.10. First support is seen at $113.50 and then at
today's low of $113.00. Wyckoff's Market Rating: 7.5.
March feeder cattle closed up $1.77 at $128.00 today.
Prices gapped higher on the daily bar chart, hit a fresh
two-week high and closed nearer the session high today.
Today's solid upside price action did provide the cattle
market bulls with fresh upside near-term technical
momentum. Feeder bulls now have the solid overall near-
term technical advantage. Prices are in a 3.5-month-old
uptrend 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 the contract
high of $129.95. The next downside price objective for
the bears is to push and close prices below solid
technical support at last week's low of $124.57. First
resistance is seen at today's high of $128.40 and then at
$129.00. First support is seen at $127.50 and then at
$127.00. Wyckoff's Market Rating: 8.0
April lean hogs closed up $2.37 at $94.00 today. Prices
hit a fresh contract high again today. The key "outside
markets" were in a bullish posture for the hog market
today, as the U.S. dollar index was weaker, crude oil
prices were sharply higher and the U.S. stock indexes
were firmer. The hog market bulls have the strong overall
near-term technical advantage and gained fresh upside
power today. Prices are in a steepening three-month-old
uptrend on the daily bar chart. The next upside price
objective for the bulls is to push and close prices above
solid chart resistance at $96.00. The next downside price
objective for the bears is pushing and closing prices
below solid technical support at $90.00. First resistance
is seen at today's contract high of $94.52 and then at
$95.00. First support is seen at $93.50 and then at
$93.00. Wyckoff's Market Rating: 9.0
