ANALYSIS - Chicago December Live Cattle futures closed up $0.05 at $129.20 Monday. Prices closed near mid-range today. December Lean Hog futures closed up $1.22 at $88.47.
For Live Cattle, the bulls have the near-term technical advantage at present. However, on fresh, significant price weakness a bearish double-top reversal pattern could play out on the daily bar chart. Bulls' next upside price "breakout" objective is to push and close prices above solid resistance at the August high of $130.80. The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $128.00. First resistance is seen at today's high of
$129.37 and then at $129.75 and then at $130.00. First support is seen at Monday's low of $129.00 and then at last week's low of $128.45.
November feeder cattle closed up $0.02 at $160.25 Monday. The feeder bulls have the solid near-term technical advantage. The next upside price breakout objective for the feeder bulls is to push and close prices above solid technical resistance at the August high of $160.85.
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 $158.00. First resistance is seen at the August high of $160.85 and then at $161.00. First support is seen at $160.00 and then at $159.50.
CME Lean Hog Closed Higher
December Lean Hog futures closed up $1.22 at $88.47 Monday. Prices closed near the session high and hit another fresh contract high. The hog bulls have the strong near-term technical advantage.
While there are no strong early technical clues to suggest a market top is close at hand, the market is short-term overbought, technically, and is due for a downside correction soon. The next upside price breakout objective for the hog bulls is to push and close prices above solid chart resistance at $90.00.
The next downside price breakout objective for the bears is pushing prices below solid technical support at last week's low of $86.60. First resistance is seen at Monday's contract high of $88.50 and then at $89.00. First support is seen at $88.00 and then at Monday's low of $87.55.ThePigSite News Desk
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