Watch us on RFD-TV, today at 12:45 PM CT!
Live Cattle (December)
December live cattle futures continued to march higher yesterday, officially retracing the breakdown point from October 12th. We continue to believe the market has room to work higher, but we would not be surprised to see the rally stall here in the very near term. The Bulls remain in control of the technical landscape, the only thing that would change that is consecutive closes back below our pivot pocket, 109.675-110.30. There is a gap just below that too, coming in from 108.675-109.35. So, a lot of congestion below the market that should offer support, so long as fundamentals do not start rolling over.
Support: 108.675-109.35****, 106.55-107.50***
Feeder Cattle (January)
January feeder cattle dropped lower yesterday but managed to finish off the lows and defend support on a closing basis, we have had that defined as 139.50. As mentioned in yesterday’s report, the Bulls still have the technical advantage over the intermediate-term, but we would not be terribly surprised to see some air come out of the market following the rise we have seen over the last three weeks. The RSI is at 67.06, not technically “overbought” but towards the top end of the range for this contract.
Support: 138.75-139.50****, 136.52-136.90**, 134.15-135.00***
Lean Hogs (December)
December lean hogs dropped down to and below technical support but managed to find buyers there to hold ground into the close. Support this morning comes in from 63.45-63.60. A break and close below this pocket would likely accelerate the selling. We believe this support pocket will eventually give way, but that does not mean today is the day.
Resistance: 69.75-70.25***, 73.45**
Support: 64.50-65.00***, 61.25-61.90***
Don't hesitate to reach out with any questions! Email Oliver Sloup at Oliver@bluelinefutures.com or Call/Text 312-837-3938
Sign up for your FREE trial of our daily Grain & Livestock Market Analysis!
Follow us on our social media sites to stay on the pulse of our latest research and commentary!
Twitter - twitter.com/bluelinefutures
Facebook - facebook.com/BlueLineFutures
StockTwits - stocktwits.com/BlueLineFutures
Latest blog posts - bluelinefutures.com/blog
Blue Line Futures
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.