Livestock Futures Commentary from Jim Wyckoff
LIVESTOCK: October live cattle closed up $0.25
at $115.75 today. Prices closed near mid-range and
saw short covering following strong selling
pressure late last week. A bearish USDA cattle-on-
feed report issued Friday afternoon did limit
buying interest today. A bear flag or bearish
pennant pattern may now be forming on the daily bar
chart. Serious near-term technical damage has been
inflicted recently. Bears have the overall near-
term technical advantage. The cattle bulls' next
upside price breakout objective is to push and
close prices above solid technical resistance at
$118.50. The next downside technical breakout
objective for the bears is pushing and closing
prices below solid technical support at the July
low of $114.25. First resistance is seen at today's
high of $116.22 and then at $117.00. First support
is seen at today's low of $115.25 and then at last
week's low of $114.85. Wyckoff's Market Rating: 4.0
October feeder cattle closed up $0.47 at $134.57
today. Prices closed near mid-range today and saw
short covering. A minor bear flag has formed on the
daily bar chart. Bears have the near-term technical
advantage. Prices are in a seven-week-old downtrend
on the daily bar chart. The next upside price
objective for the feeder bulls is to push and close
prices above technical resistance at $138.00. The
next downside price breakout objective for the
bears is to push and close prices below solid
technical support at $132.00. First resistance is
seen at today's high of $135.05 and then at
$135.50. First support is seen at today's low of
$134.00 and then at last week's low of $133.70.
Wyckoff's Market Rating: 4.0
October lean hogs closed up $0.57 at $88.95 today.
Prices closed near mid-range today and saw short
covering. Bears still have the slight overall near-
term technical advantage. The next upside price
breakout objective for the bulls is to push and
close prices above solid chart resistance at last
week's high of $90.55. The next downside price
breakout objective for the bears is pushing prices
below solid technical support at last week's low of
$86.55. First resistance is seen at today's high of
$89.25 and then at $90.00. First support is seen at
today's low of $88.50 and then at $88.00. Wyckoff's
Market Rating: 4.5
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