Live Cattle (October)
October live cattle gaped lower on yesterday’s open, following Friday’s bearish cattle on feed report. The gap will be first resistance this week, see that from 109.05-109.40. If the Bull camp fails to reclaim ground above this pocket, we could see continued long liquidation take prices lower. The first support was tested yesterday and held; we have defined that pocket as 106.70-107.30. A break and close below this pocket would neutralize the Bullish technical developments over the last two and a half months.
Resistance: 109.05-109.40***, 111.00-111.25****
Support: 106.70-107.30***, 102.60-103.65***, 99.35**
Feeder Cattle (October)
October feeder cattle broke lower to start the wee. Previous support will be resistance going forward, we define that as 144.65-145.075. The first meaningful support now comes in from 140.05-140.50. A firm corn trade could be a catalyst to spark long liquidation and producer selling.
Resistance: 144.65-145.075****, 151.175-151.725****
Lean Hogs (October)
October lean hogs tried to breakout above the top end of the recent range but failed, sparking the market to retreat near our pivot pocket, 53.40-53.775. There is a gap from 52.75, which continues to be a caution flag in the near term. If the Bulls can continue to defend technical support, we could see the trend of higher lows and higher highs take us back near 58.25.
Resistance: 58.30**, 61.90-62.50****
Support: 52.00-52.75***, 50.55-51.075***, 46.475***
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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.