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Wyckoff's Livestock Report: Lean Hogs Closed Down on Thursday

01 November 2013
Jim Wyckoff Commentary -  TheCropSite

US - December lean hogs closed down $1.22 at $89.17 Thursday.

Traders are awaiting the results of this afternoon's monthly USDA cattle-on-feed report. The cattle futures bulls still have the solid overall near-term technical advantage. There are no early technical clues to suggest a market top is close at hand. Bulls' next upside price "breakout" objective is to push and close prices above solid resistance at last week's contract high of $134.70. The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at the October low of $131.40. First resistance is seen at today's high of $133.75 and then at $134.00. First support is seen at today's low of $132.65 and then at $132.00. Wyckoff's Market Rating: 7.5.

January feeder cattle closed down $1.00 at $163.80 Thursday. Prices closed near the session low, hit a fresh four-week low and closed at a bearish monthly low close today. The feeder bulls have faded badly, to suggest a major market top is in place. The next upside price breakout objective for
the feeder bulls is to push and close prices above solid technical resistance at this week's high of $167.20. The next downside price breakout objective for the bears is to push and close prices below solid technical support at $162.00. First resistance is seen at $164.00 and then at $164.77.
First support is seen at today's low of $163.65 and then at $163.00. Wyckoff's Market Rating: 5.0

December lean hogs closed down $1.22 at $89.17 Thursday. Prices closed near the session low on more profit taking. There was good follow-through selling pressure on Thursday and a bearish "key reversal" down on the daily chart was confirmed. That is an early technical clue that a market top is in place. Traders are awaiting this afternoon's latest USDA cold storage report. The hog market bulls do still have the overall near-term technical advantage. The next upside price breakout objective for the hog bulls is to push and close prices above solid chart resistance at the contract high of
$92.30. The next downside price breakout objective for the bears is pushing prices below solid technical support at $87.50. First resistance is seen at $89.72 and then at today's high of $90.15. First support is seen at today's low of $89.10 and then at $88.50. Wyckoff's Market Rating: 6.5

ThePigSite News Desk

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any traders and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 1. Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.



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