ShapeShapeauthorShapechevroncrossShapeShapeShapeGrouphamburgerhomeGroupmagnifyShapeShapeShaperssShape

Jim Wyckoff: Lean Hogs Closed Up on Tuesday

13 March 2014, at 9:41am

US - April lean hogs closed up $1.10 at $117.10 Tuesday.

Prices hit another fresh contract and all-time record high today. This market is 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, including a pig disease in the U.S. and strong consumer demand. 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. Recent price action will likely produce a blow-off spike top in the hog futures market soon. The next upside price breakout objective for the hog bulls is to push and close prices above solid chart resistance at $119.00. The next downside price breakout objective for the bears is pushing prices below solid technical support at $110.00. First resistance is seen at today’s contract high of $117.70 and then at $118.00. First support is seen at $116.00 and then at today’s low of $115.30. Wyckoff's Market Rating: 10.0

April live cattle closed up $0.07 at $143.22 Tuesday. Prices closed nearer the session low. The market is pausing following last week’s volatile price action. This pause is not bullish.

The collapse in volatility makes me suspect a bigger move is right around the corner. Last week’s price action produced a bearish “key reversal” down on the daily bar chart. That is an early technical clue that a market top is in place. 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 last week’s contract high of $146.65.

The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $141.00. First resistance is seen at $143.60 and then at $144.00. First support is seen at today’s low of $142.70 and then at $142.00. Wyckoff's Market Rating: 6.5

May feeder cattle closed down $0.30 at $176.25 Tuesday. Prices hit another contract high and then backed down a bit on mild profit taking. 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 $180.00. 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 today’s contract high of $177.15 and then at $177.50. First support is seen at today’s low of $175.82 and then at $175.00. Wyckoff's Market Rating: 8.0