Hog Futures: Lean Hogs Closed Up on Monday06 May 2014
US - June lean hogs closed up $0.07 at $122.30 Monday. Prices closed near mid-range.
The bulls and bears are on a level near-term technical playing field. However, a six-week-old downtrend line is in place on the daily bar chart. The next upside price breakout objective for the hog bulls is to push and close prices above solid chart resistance at $127.50. The next downside price breakout objective for the bears is pushing prices below solid technical support at $121.50. First resistance is seen at today’s high of $122.75 and then at $123.00. First support is seen at $121.50 and then at $121.00. Wyckoff's Market Rating: 5.0
June live cattle closed down $0.60 at $137.45 Monday. Prices closed near the session low and saw profit taking after prices on Friday hit a contract high. The bulls still have the near-term technical advantage. Steady to higher cash cattle prices last week and the big discount that futures have to the cash cattle market are supportive for the futures. Still, Friday’s low-range close and then follow-through selling today does hint the bulls are now exhausted. Bulls’ next upside price objective is to push and close prices above solid resistance at $140.00. The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at last week’s low of $136.50. First resistance is seen at $138.00 and then at today’s high of $138.60. First support is seen at $137.00 and then at $136.50. Wyckoff's Market Rating: 7.0
August feeder cattle closed down $0.45 at $189.87 Monday. The market saw profit taking after hitting a contract and record high on Friday. Bulls still have the solid overall near-term technical advantage. However, the market Friday’s price action produced a bearish buying “exhaustion tail” on the daily bar chart, which is one clue that a 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 Friday’s contract and record high of $193.47. The next downside price breakout objective for the bears is to push and close prices below solid technical support at $187.00. First resistance is seen at today’s high of $190.30 and then at $191.00. First support is seen at $189.00 and then at $188.50. Wyckoff's Market Rating: 7.5
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