Live Cattle (October)
October live cattle traded lower yesterday, retracing the breakout point from July 16th. 104.975-105.50 is the pivot pocket to keep an eye on this week, if the Bulls cannot reclaim ground above this pocket, we could see prices retreat back towards the 100 and 50 day moving average, 99.35 and 101.75, respectively. Resistance remains intact from 106.70-107.30. This pocket represents the top end of the recent range and the 200-day moving average, more importantly, it represents the breakdown point from March.
Support: 101.75-102.65***, 99.35**
Feeder Cattle (August)
August feeder cattle failed to break out above resistance which led to a wave of profit-taking yesterday. Prices retreated to the breakout point from July 16th, 138.75-139.425, a pocket that we have labeled 4-star support. A break and close below this pocket could lead to additional long liquidation and take prices back towards our next support pocket, 136.00-136.40.
Support: 138.75-139.425****, 136.00-136.40**
Lean Hogs (August)
August lean hogs continue to be constructive as they try to carve out a low in the market. We always say a bottom is a process and not necessarily a point (only in hindsight), and over the last two week’s we have seen that process play out, presenting some good risk/reward setups to the buy-side. We remain optimistic on prices so long as the Bull camp can continue to defend the psychologically significant 50.00 handle.
Resistance: 58.025-59.30***, 67.125-67.525***
Support: 50.00-50.60****, 47.525**
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Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.