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RSS By: Jim Wyckoff, Pro Farmer

Pro Farmer technical analyst Jim Wyckoff's daily thoughts.

Jim's Afternoon Markets Report--December 5

Dec 06, 2011

Monday Evening, December 5-Jim Wyckoff's Daily Markets
Update

Questions? Just email me at jim@jimwyckoff.com . I enjoy
hearing from my readers worldwide.--Jim

Click below for "Today’s Hot Market" item on my website.

http://www.jimwyckoff.com/hotmarket/hotmarket.asp

Dear Valued Subscriber: Following are today's significant
developments in the U.S. futures markets.

*. LIVESTOCK: February live cattle closed down the $3.00
limit at $120.25 today. Prices closed at a fresh 2.5-month
low close today and were hammered by ideas the cash market
has put in a top and that wholesale beef prices will trend
lower. The cattle market bulls faded badly today as serious
chart damage was inflicted today. The bulls' next upside
price breakout objective is to push and close prices above
solid technical resistance at $122.50. The next downside
technical breakout objective for the bears is pushing and
closing prices below solid technical support at the
September low of $118.50. First resistance is seen at
$121.00 and then at $121.50. First support is seen at the
November low of $120.20 and then at $119.50. Wyckoff's
Market Rating: 4.5

March feeder cattle closed down $2.80 at $146.35 today.
Prices closed near the session low and hit a fresh four-
week low today. Bulls still have the overall near-term
technical advantage but faded badly today and need to show
fresh power soon. The next upside price objective for the
feeder bulls is to push and close prices above technical
resistance at last week’s high of $149.27. The next
downside price breakout objective for the bears is to push
and close prices below solid technical support at the
November low of $144.30. First resistance is seen at
$147.00 and then at $147.50. First support is seen at
$146.15 and then at $145.50. Wyckoff's Market Rating: 6.0

February lean hogs closed down $1.10 at $88.12 today.
Prices closed near the session low today and hit a fresh
two-week low. Weakening cash hog market fundamentals are
pressuring the hog futures market. Bulls have faded badly
recently. The next upside price breakout objective for the
bulls is to push and close prices above solid chart
resistance at $90.00. The next downside price breakout
objective for the bears is pushing prices below solid
technical support at the November low of $86.80. First
resistance is seen at today’s high of $89.05 and then at
$89.50. First support is seen at $88.00 and then at $87.50.
Wyckoff's Market Rating: 4.5

*. GRAINS: March corn futures closed down 4 1/4 cents at
$5.91 today. Prices closed nearer the session low today and
were pressured by general commodity market weakness today.
My bias is that a near-term low is in place, or close at
hand, for corn, even though the technical still favor the
bears. Corn market bears still have the solid overall near-
term technical advantage. Corn bulls' next upside price
breakout objective is to push and close prices above solid
technical resistance at $6.25. The next downside price
breakout objective for the bears is pushing and closing
prices below solid technical support at the October low of
$5.86. First resistance for March corn is seen at $5.95 and
then at $6.00. First support is seen at today’s low of
$5.89 1/2 and then at $5.86. Wyckoff's Market Rating: 3.0

January soybeans closed down 9 1/2 cents at $11.26 1/4 a
bushel today. Prices closed nearer the session low today
and scored a bearish “outside day” down on the daily bar
chart. My bias is also that soybeans are near a major low.
But soybean bears still have the solid overall near-term
technical advantage. Prices are in a seven-week-old
downtrend on the daily bar chart. The next near-term upside
technical breakout objective for the soybean bulls is
pushing and closing prices above solid technical resistance
at $11.75 a bushel. The next downside price breakout
objective for the bears is pushing and closing prices below
psychological support at $11.00. First resistance is seen
at $11.35 and then at today’s high of $11.48 1/2. First
support is seen at today’s low of $11.22 and then at last
week’s low of $11.11 1/2. Wyckoff's Market Rating: 2.5.

March soybean meal closed down $5.40 at $286.60 today.
Prices closed near the session low today. Meal bears still
have the solid overall near-term technical advantage. The
next upside price breakout objective for the bulls is to
produce a close above solid technical resistance at
$300.00. The next downside price breakout objective for the
bears is pushing and closing prices below solid technical
support at $275.00. First resistance comes in at $290.00
and then at today’s high of $294.20. First support is seen
at today’s low of $286.10 and then at the November low of
$283.40. Wyckoff's Market Rating: 2.0

March bean oil closed up 5 points at 50.70 cents today.
Prices closed nearer the session low today and saw tepid
short covering in a bear market. Bears still have the
overall near-term technical advantage. The next upside
price breakout objective for the bean oil bulls is pushing
and closing prices above solid technical resistance at
51.60 cents. Bean oil bears' next downside technical price
breakout objective is pushing and closing prices below
solid technical support at the November low of 48.78 cents.
First resistance is seen at 51.00 cents and then at today’s
high of 51.23 cents. First support is seen at today’s low
of 50.41 cents and then at 50.00 cents. Wyckoff's Market
Rating: 2.5

March Chicago SRW wheat closed down 14 cents at $6.11 1/2
today. Prices closed nearer the session low today. Wheat
bears have the solid overall near-term technical advantage.
Bulls' next upside price breakout objective is to push and
close Chicago SRW prices above solid technical resistance
at $6.50 a bushel. The next downside price breakout
objective for the wheat futures bears is pushing and
closing prices below solid technical support at the
November low of $5.86. First resistance is seen at $6.20
and then at today’s high of $6.31 3/4. First support lies
at today’s low of $6.07 1/2 and then at $6.00. Wyckoff's
Market Rating: 2.0.

March K.C. HRW wheat closed down 9 cents at $6.72 1/2
today. Prices closed nearer the session low today. Bears
have the solid overall near-term technical advantage.
Bulls' next upside price breakout objective is pushing and
closing prices above psychological resistance at $7.00. The
bears' next downside breakout objective is pushing and
closing prices below solid technical support at $6.25.
First resistance is seen at $6.80 and then at last week’s
high of $6.88. First support is seen at today’s low of
$6.66 and then at last week’s low of $6.52 1/2. Wyckoff's
Market Rating: 2.0

March oats closed down 8 cents at $3.07 today. Prices
closed near the session low today and scored a bearish
“outside day” down on the daily bar chart. Oats bears have
the overall near-term technical advantage and gained fresh
downside technical momentum today. Bears' next downside
price breakout objective is pushing and closing prices
below psychological support at $3.00. Bulls' next upside
price breakout objective is pushing and closing prices
above solid technical resistance at last week’s high of
$3.22 1/2. First support lies at today’s low of $3.06 1/4
and then at $3.05. First resistance is seen at $3.10 and
then at $3.15. Wyckoff's Market Rating: 2.0

*. SOFTS: March sugar closed up 60 points at 24.05 cents
today. Prices closed nearer the session high today on short
covering in a bear market. Sugar bears have the overall
near-term technical advantage. Sugar bulls' next upside
price breakout objective is to push and close prices above
solid technical resistance at 25.00 cents. Bears' next
downside price breakout objective is to push and close
prices below solid technical support at the November low of
22.71 cents. First resistance is seen at today’s high of
24.18 cents and then at 24.32 cents. First support is seen
at today’s low of 23.51 cents and then at 23.15 cents.
Wyckoff's Market Rating: 3.0

March coffee closed up 650 points at 236.05 cents. Prices
closed nearer the session high today and saw short covering
in a bear market and some bargain-hunting buying. Coffee
bears still have the overall near-term technical advantage.
The coffee bulls' next upside breakout objective is to
close prices above solid technical resistance at the
November high of 243.30 cents. The next downside price
breakout objective for the bears is closing prices below
solid technical support at the October low of 223.15 cents
a pound. First resistance is seen at last week’s high of
238.95 cents and then at 240.50 cents. First support is
seen at 235.00 cents and then at 232.50 cents. Wyckoff's
Market Rating: 3.0

March cocoa closed down $28 at $2,200 a ton. Prices closed
near the session low today and hit another fresh contract
low. The cocoa bears have the solid overall near-term
technical advantage. The next upside price breakout
objective for the cocoa bulls is to push and close prices
above solid technical resistance at $2,400. The next
downside price breakout objective for the bears is pushing
and closing prices below solid technical support at $2,100.
First resistance is seen at today’s high of $2,249 and then
at $2,275. First support is seen at today’s contract low of
$2,196 and then at $2,150. Wyckoff's Market Rating: 1.0.

March cotton closed down up 38 points at 92.22 cents today.
Prices closed near mid-range today and saw tepid short
covering in a bear market. Cotton bears have the solid
near-term technical advantage. The next upside price
objective for the bulls is to produce a close above solid
technical resistance at 95.00 cents. The next downside
price breakout objective for the cotton bears is to push
and close prices below solid technical support at the
November low of 88.50 cents. First support is seen at
today’s low of 91.54 cents and then at 91.00 cents. First
resistance is seen at today’s high of 92.80 cents and then
at last week’s high of 93.67 cents. Wyckoff's Market
Rating: 2.5

January orange juice closed up 100 points at $1.7860 today.
Prices closed near mid-range today. FCOJ bulls have the
solid overall near-term technical advantage. The next
upside price breakout objective for the FCOJ bulls is
pushing and closing prices above solid technical resistance
at the contract high of $1.8420. The next downside
technical breakout objective for the FCOJ bears is to
produce a close below solid technical support at $1.7000.
First resistance is seen at today’s high of $1.7970 and
then at last week’s high of $1.8050. First support is seen
at today’s low of $1.7730 and then at $1.7600. Wyckoff's
Market Rating: 7.5.

January lumber futures closed up $5.80 at $232.80 today.
Prices closed near the session low today and saw short
covering in a bear market. Trading has turned volatile, but
that’s the nature of lumber futures. The lumber bears still
have the overall near-term technical advantage. The next
downside technical breakout objective for the lumber bears
is pushing and closing prices below solid technical support
at last week’s low of $218.20. The next upside price
breakout objective for the bulls is pushing and closing
prices above solid technical resistance at $242.50. First
resistance is seen at $235.00 and then at today’s high of
$226.20. First support is seen at $230.00 and then at
$228.00. Wyckoff's Market Rating: 2.5

*. METALS: February gold futures closed down $15.00 an
ounce at $1,736.30 today. Prices closed nearer the session
low today and more of a corrective pullback from recent
gains and some more consolidation. Bulls still have the
overall near-term technical advantage. A nine-week-old
uptrend is in place on the daily bar chart. Bulls' next
upside technical breakout objective is to produce a close
above solid technical resistance at $1,775.00. Bears' next
near-term downside price objective is closing prices below
psychological support at $1,700.00. First resistance is
seen at $1,750.00 and then at today’s high of $1,778.80.
First support is seen at today’s low of $1,732.20 and then
at $1,725.00. Wyckoff's Market Rating: 5.5.

March silver futures closed down $0.256 an ounce at $32.43
today. Prices closed near the session low today on profit
taking from recent gains and on consolidation. Bulls next
upside price breakout objective is closing prices above
solid technical resistance at $34.00 an ounce. The next
downside price breakout objective for the bears is closing
prices below solid technical support at the November low of
$30.74. First resistance is seen at today’s high of $33.085
and then at $33.50. Next support is seen at $32.00 and then
at $31.50. Wyckoff's Market Rating: 5.0.

March N.Y. copper closed up 225 points 360.80 cents today.
Prices closed near mid-range today. Bulls have gained some
upside near-term technical momentum recently to suggest a
market low is in place. The key “outside markets” were
bullish for the copper market today, as the U.S. dollar
index was weaker and crude oil and the U.S. stock indexes
were higher. Copper bulls' next upside breakout objective
is pushing and closing prices above solid technical
resistance at the October high of 376.80 cents. The next
downside price breakout objective for the bears is closing
prices below solid technical support at the November low of
321.85 cents. First resistance is seen at today’s high of
363.60 cents and then at last week’s high of 367.40 cents.
First support is seen at today’s low of 356.40 cents and
then at 352.75 cents. Wyckoff's Market Rating: 5.5.

*. ENERGIES: January crude oil closed down $0.24 a barrel
at $100.74 today. Prices closed nearer the session low
today and saw mild profit taking after hitting a fresh two-
week high early on today. Crude bulls have the overall
near-term technical advantage. The next near-term upside
price breakout objective for the crude oil bulls is
producing a close above solid technical resistance at the
November high of $103.37 a barrel. The next near-term
downside price breakout objective for the crude oil bears
is to produce a close below solid technical support at last
week’s low of $94.99. First resistance is seen at $102.00
and then at today’s high of $102.44. First support is seen
at $100.00 and then at $99.00. Wyckoff's Market Rating:
7.0.

January heating oil closed down 1 point at $2.9901 today.
Prices closed near the session low today after hitting a
fresh two-week high early on. Bulls and bears are on a
level near-term technical playing field. The bulls' next
upside price breakout objective is closing prices above
solid technical resistance at this week’s high of $3.0685.
Bears' next downside price breakout objective is producing
a close below solid technical support at last week’s low of
$2.9288. First resistance lies at $3.0000 and then at
$3.0250. First support is seen at today’s low of $2.9827
and then at $2.9620. Wyckoff's Market Rating: 5.0.

January (RBOB) unleaded gasoline closed down 162 points at
$2.6000 today. Prices closed near the session low today
after hitting a fresh three-week high early on. Bears have
the overall near-term technical advantage. The next upside
price breakout objective for the bulls is closing prices
above solid technical resistance at today’s high of
$2.6777. Bears' next downside price breakout objective is
closing prices below solid support at $2.5000. First
resistance is seen at $2.6250 and then at $2.6500. First
support is seen at $2.5750 and then at $2.5500. Wyckoff's
Market Rating: 3.5.

January natural gas closed down 12.7 cents at $3.457 today.
Prices closed nearer the session low today and dropped to
yet another fresh contract low. Bears still have the solid
overall near-term technical advantage. The next upside
price breakout objective for the bulls is closing prices
above solid technical resistance at $3.72. The next
downside price breakout objective for the bears is closing
prices below solid technical support at $3.25. First
resistance is seen at $3.50 and then at today’s high of
$3.572. First support is seen at today’s contract low of
$3.444 and then at $3.40. Wyckoff's Market Rating: 1.0.

*.STOCKS, FINANCIALS, CURRENCIES: The March Euro currency
closed down 19 points at 1.3395 today. Prices closed nearer
the session low today. Bears still have the overall near-
term technical advantage. Prices are still in a five-week-
old downtrend on the daily bar chart. Euro bulls' next
upside price breakout objective is pushing and closing
prices above solid technical resistance at 1.3576. The next
downside price breakout objective for the bears is closing
prices below solid chart support at the November low of
1.3240. First resistance for the Euro lies at 1.3500 and
then at last week’s high of 1.3550. Next support is seen at
1.3374 and then at 1.3300. Wyckoff's Market Rating: 3.0

The March Japanese yen closed up 47 points at 1.2893 today.
Prices closed near the session high today and scored a
bullish “outside day” up on the daily bar chart. Short
covering was seen today. Bulls and bears are on a level
near-term technical playing field. Bulls' next upside price
breakout objective is closing prices above solid resistance
at 1.3000. Bears' next downside breakout objective is
closing prices below solid technical support at last week’s
low of 1.2812. First resistance is seen at today’s high of
1.2904 and then at 1.2930. First support is seen at 1.2850
and then at today’s low of 1.2838. Wyckoff's Market Rating:
5.0.

The March Swiss franc closed up 2 points at 1.0884 today.
Prices closed near mid-range today in quiet trading. Bears
still have the overall near-term technical advantage. The
next upside price breakout objective for the bulls is
closing prices above solid resistance at last week’s high
of 1.1058. The next downside price breakout objective for
the bears is closing prices below solid technical support
at the November low of 1.0738. First resistance is seen at
today’s high of 1.1026 and then at 1.1000. First support is
seen at 1.0850 and then at 1.0800. Wyckoff's Market Rating:
2.5.

The March Australian dollar closed up 38 points at 1.0150
today. Prices closed nearer the session high today. Bulls
still have some upside technical momentum and are on a
level near-term technical playing field with the bears. A
bullish pennant pattern has formed on the daily bar chart.
Bulls' next upside price breakout objective is closing
prices above solid chart resistance at 1.0300. The next
downside breakout objective for the bears is to produce a
close below solid technical support at .9850. First
resistance is seen at last week’s high of 1.0205 and then
at 1.0250. Next support is seen at today’s low of 1.0082
and then at 1.0033. Wyckoff's Market Rating: 5.0

The March Canadian dollar closed up 1 point at .9801 today.
Prices closed nearer the session low today. Bears still
have the slight overall near-term technical advantage.
Bulls' next upside price breakout objective is producing a
close above chart resistance at .9925. The next downside
price breakout objective for the bears is closing prices
below solid technical support at the November low of .9485.
First resistance is seen at today’s high of .9855 and then
at last week’s high of .9895. First support is seen at
.9785 and then at .9750. Wyckoff's Market Rating: 4.5.

The March British pound closed up 38 points at 1.5617
today. Prices closed nearer the session low today and saw
short covering. Bears have the overall near-term technical
advantage. The next upside price breakout objective for the
bulls is closing prices above solid technical resistance at
1.5900. Bears' next downside technical breakout objective
is closing prices below solid support at the November low
of 1.5415. First resistance is seen today’s high of 1.5707
and then at last week’s high of 1.5758. First support is
seen at 1.5562 and then at 1.5500. Wyckoff's Market Rating:
3.5.

The March U.S. dollar index closed down 6 points at 79.10
today. Prices closed nearer the session high today. Bulls
still have the overall near-term technical advantage but
need to show fresh power soon. Bulls' next upside price
breakout objective is to close prices above solid technical
resistance at the October high of 80.58. The next downside
price breakout objective for the bears is to produce a
close below solid technical support at 77.50. Next
resistance lies at 79.31 and then at 79.50. First support
is seen at today’s low of 78.72 and then at last week’s low
of 78.25. Wyckoff's Market Rating: 6.5.

March U.S. T-Bonds closed up 1/32 at 141 27/32 today.
Prices closed nearer the session high today and saw some
late buying as the U.S. stock market dipped and the U.S.
dollar index moved up from its low on news S&P might
downgrade EU countries’ debt ratings. Bond market bulls
still have the overall near-term technical advantage, but
are fading and need to show more power soon. The next
downside price breakout objective for the T-Bond bears is
closing prices below solid technical support at 138 even.
The next upside technical objective for the bulls is to
produce a close above solid technical resistance at the
November high of 145 8/32. First resistance is seen at
today’s high of 142 4/32 and then at 143 even. First
support is seen at 141 even and then at today’s low of 140
20/32. Wyckoff's Market Rating: 6.0.

March U.S. T Notes closed down 1.0 (32nds) at 129.20.5
today. Prices closed nearer the session high today. Bulls
still have the overall near-term technical advantage but
are fading and need to show more power soon. The next
upside price breakout objective for the bulls is closing
prices above solid resistance at last week’s high of
130.01.5. The next downside price breakout objective for
the bears is producing a close below solid technical
support at last week’s low of 128.20.0. First resistance is
seen at today’s high of 129.23.5 and then at 130.01.5.
First support is seen at today’s low of 129.03.5 and then
at 128.28.0. Wyckoff's Market Rating: 6.0

GENERAL STOCK MARKET COMMENT: The U.S. stock indexes closed
firmer today as the EU debt crisis situation appears to be
stabilizing—at least for the moment. The stock index bulls
are hoping the seasonal “Santa Claus” rally in the U.S.
stock market is under way.

The Nasdaq stock futures index closed up 26.50 at 2,329.75
today. Prices closed near mid-range today and closed at a
fresh three-week high close. Bulls' next upside price
breakout objective is closing prices above solid resistance
at the October high of 2,408.75. The bears' next downside
price breakout objective is closing prices below solid
technical support at the November low of 2,135.75. First
resistance is seen at last week’s high of 2,344.75 and then
at 2,375.00. First support is seen at today’s low of
2,309.00 and then at 2,284.00. Wyckoff's Market Rating: 6.0

The S&P 500 futures index closed up 13.80 at 1,257.30.
Prices closed near mid-range today and hit a fresh three-
week high. Bulls' next upside price breakout objective is
closing prices above solid resistance at the October high
of 1,288.70. The next downside price breakout objective for
the bears is closing prices below solid support at the
November low of 1,147.50. First resistance is seen at
today’s high of 1,266.00 and then at the November high of
1,275.00. First support is seen at today’s low of 1,249.00
and then at 1,236.00. Wyckoff's Market Rating: 5.5.

The Dow futures closed up 90 points at 12,072 today. Prices
closed nearer the session low today but did hit a fresh
five-week high early on. The next upside price objective
for the bulls is closing prices above solid technical
resistance at the October high of 12,230. The next downside
price objective for the bears is closing prices below solid
technical support at 11,500. First resistance in the Dow
lies at today’s high of 12,175 and then at 12,230. First
support is seen at today’s low of 12,072 and then at
12,000. Wyckoff's Market Rating: 6.0.

Click below for my welcome letter to all new customers and
for an explanation of my Market Rating System.

http://www.jimwyckoff.com/newsletter/WelcomeAboard/

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.

Jim Wyckoff
 

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