Live Cattle (August)
Live cattle had a strong start to the week with help from strong outside markets, rallying right back to our resistance pocket. the bulls want to see a conviction close above 99.85-101.90 to encourage another surge higher. This is a wider pocket than we would like to use, but there are so many significant indicators within these price points that we chose to make one wide pocket, instead of several tighter pockets right next to each other. This pocket contains the 50% retracement (middle of the range from contract highs to contract lows), previously important price points (from last week, to last fall) and the 100-day moving average. Support remains intact from 95.10-95.45, this pocket represents the gap May 7th, a key retracement, along with other previously important price points.
Resistance: 104.40-105.97***, 107.925-109.325****
Support: 95.10-95.45****, 92.525-93.675***, 89.05-90.025***
Feeder Cattle (August)
Feeder cattle futures had a day, rallying to finish locked limit higher, giving us expanded limits for today’s session, 6.75. The rally happens to put prices right back in our pivot pocket, 132.75-133.725. Consecutive closes above this pocket would lend hand for a pus towards the top end of the recent range and our next resistance pocket, 137.70-139.125.
Resistance: 137.70-139.125****, 145-146***
Support: 127.25-128.45***, 123.475-124.30***, 121.00-121.65****
Lean Hogs (June)
The market started the shortened week with a nice move higher, taking prices into our first resistance pocket, 61.00-62.00. If the bulls can chew through and achieve consecutive closes above here, we could see an extension towards the early May highs, near the 66 handle. Higher lows are becoming a trend, giving the bull camp a slight advantage on the near term chart. With that said, we would not be surprised to see us into more of a range, 55-65(ish).
Resistance: 61.00-62.10***, 66.025***, 68.75****
Support: 54.775-55.275****, 51.325-51.625***
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Call/Text/Email, Oliver with any questions.
Oliver@BlueLineFutures.com and 312-837-3938
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.