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Hog Futures: Lean Hogs Closed Down on Monday

25 March 2014
Jim Wyckoff Commentary -  TheCropSite

US - June lean hogs closed down $2.07 at $128.25 Monday. Prices closed nearer the session low on more heavy profit taking. It appears the air is finally starting to come out of this big bull market run.

There are still very bullish cash hog market fundamentals at work, which is likely to keep futures prices volatile in the near term. Hog futures bulls 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 $133.40. The next downside price breakout objective for the bears is pushing prices below solid technical support at $125.00. First resistance is seen at today’s high of $129.60 and then at $130.00. First support is seen at $127.50 and then at $127.00. Wyckoff's Market Rating: 7.5

June live cattle closed up $0.32 at $136.45 Monday. Prices closed nearer the session high on a corrective bounce after selling pressure late last week. A bearish USDA cattle-on-Feed report last Friday was offset by still-bullish near-term cash cattle market fundamentals.

A bearish “key reversal” down was confirmed on the daily chart last week, which is an early clue that a market top is in place. But right now the bulls still have the overall near-term technical advantage. Bulls’ next upside price “breakout” objective is to push and close prices above solid resistance at the contract high of $138.75. The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $134.00. First resistance is seen at $137.00 and then at $137.50. First support is seen at last week’s low of $135.30 and then at $135.00. Wyckoff's Market Rating: 6.5

May feeder cattle closed up $1.07 at $177.57 Monday. Prices closed near the session high on a corrective bounce from last week’s selling pressure. Price action late last week also produced a bearish “key reversal” down on the daily bar chart, which is one early technical clue of a market top being in place. But more solid upside price action early this week would negate that chart pattern.

Right now the feeder bulls have the solid overall 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 contract high of $179.25. The next downside price breakout objective for the bears is to push and close prices below solid technical support at $175.00. First resistance is seen at $178.00 and then at $178.60. First support is seen at $177.00 and then at $176.50. Wyckoff's Market Rating: 7.5

 

 

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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