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Hog Futures: Lean Hogs Closed Down on Thursday

21 March 2014, at 8:29am

US - June lean hogs closed down $1.45 at $130.80 Thursday. Prices closed near the session low on more profit taking after hitting a contract and all-time record high Tuesday.

This market is still in a parabolic stage, which suggests, from a time perspective, that a market top is close at hand. There are still very bullish cash hog market fundamentals at work. Hog futures bulls still have the solid overall near-term technical advantage. Prices are still in a steep two-month-old uptrend 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 the contract high of $133.40. The next downside price breakout objective for the bears is pushing prices below solid technical support at $127.50. First resistance is seen at today’s high of $131.35 and then at $132.00. First support is seen at $130.00 and then at $129.00. Wyckoff's Market Rating: 8.5

June live cattle closed down $2.27 at $136.00 Thursday. Prices closed near the session low and scored a big and bearish “outside day” down on the daily bar chart, which is also a bearish “key reversal” down. Heavy profit taking was featured today. Prices early on today poked to a fresh contract high. Today’s price action is an early technical 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 today’s 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 $136.50 and then at $137.00. First support is seen at today’s low of $136.00 and then at $135.50. Wyckoff's Market Rating: 6.5

May feeder cattle closed down $2.40 at $176.17 Thursday. Prices backed way off on profit taking. Follow-through selling pressure on Friday would begin to suggest a market top is in place. But right now the feeder bulls still have the 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 $178.85. The next downside price breakout objective for the bears is to push and close prices below solid technical support at $174.00. First resistance is seen at $177.00 and then at $177.50. First support is seen at $176.00 and then at $175.50. Wyckoff's Market Rating: 6.5