Tuesday, March 01, 2011
Livestock Futures Commentary from Jim Wyckoff
LIVESTOCK: April live cattle closed down $1.20 at
$112.90 today. Prices closed nearer the session low
today, hit a fresh two-week low and scored a big and
bearish "outside day" down on the daily bar chart. Demand
uncertainty amid the Middle East unrest still has the
livestock bulls uneasy. The cattle bulls still have the
overall near-term technical advantage, but did fade today
and need to show fresh power soon. Cattle market bulls'
next upside price breakout objective is to push and close
prices above solid technical resistance at the February
high of $115.60. The next downside technical breakout
objective for the bears is pushing prices below solid
technical support at the February low of $110.60. First
resistance is seen at $113.50 and then at $114.00. First
support is seen at today's low of $112.45 and then at
$112.00. Wyckoff's Market Rating: 6.5.
April feeder cattle closed up $0.15 at $131.77 today.
Prices closed nearer the session low today but did hit a
fresh contact and all-time high of $133.30 early on
today. Bulls have the solid overall technical advantage.
The next upside price breakout objective for the feeder
bulls is to push and close prices above solid technical
resistance at $134.00. The next downside price breakout
objective for the bears is to push and close prices below
solid technical support at last week's low of $129.40.
First resistance is seen at $132.00 and then at $132.50.
First support is seen at today's low of $131.00 and then
at $130.50. Wyckoff's Market Rating: 8.5
April lean hogs closed down $1.40 at $88.80 today. Prices
closed near the session low today, hit a fresh five-week
low and closed at a bearish monthly low close. Serious
near-term chart damage has been inflicted recently. Price
action recently has produced a bearish downside
"breakout" from a sideways trading range at higher price
levels. The next upside price breakout objective for the
bulls is to push and close prices above solid chart
resistance at $91.00. The next downside price breakout
objective for the bears is pushing and closing prices
below solid technical support at $87.50. First resistance
is seen at $89.00 and then at $89.50. First support is
seen at today's low of $88.60 and then at $88.00.
Wyckoff's Market Rating: 5.0
