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Hog Futures: Lean Hogs Closed Down on Wednesday

20 March 2014, at 11:39pm

US - June lean hogs closed down $0.75 at $132.25 Wednesday. Prices backed off on some 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 have the solid overall near-term technical advantage.

Prices are in a very 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 $135.00.

The next downside price breakout objective for the bears is pushing prices below solid technical support at $125.00.

First resistance is seen at the contract high of $133.20 and then at $134.00. First support is seen at today’s low of $131.05 and then at $130.00. Wyckoff's Market Rating: 9.0

June live cattle closed down $0.07 at $138.27 Wednesday. Prices closed nearer the session high and hit a fresh contract high today.

Cash market fundamentals remain fully bullish, as traders await the results of this week’s cash cattle trade in the U.S. Bulls’ next upside price “breakout” 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 $135.00.

First resistance is seen at today’s contract high of $138.45 and then at $139.00. First support is seen at $137.50 and then at $137.00. Wyckoff's Market Rating: 8.0

May feeder cattle closed up $0.25 at $178.57 Wednesday. Prices hit a contract high Monday and the feeder bulls still 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 $180.00. 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 Monday’s contract high of $178.82 and then at $179.50. First support is seen at today’s low of $177.85 and then at $177.00. Wyckoff's Market Rating: 8.0