Live Cattle (April)
April live cattle futures continued to drift lower yesterday, breaking and narrowly closing below our 4-star support pocket, 119.40-119.90. We have been talking about being buyers in that pocket after suggesting reducing against technical resistance, 124.50. We did not get the springboard off support like we wanted and if we cannot get that today it will neutralize our near-term bias. The next meaningful support pocket does not come in until closer to 117. We were hoping to see cash and the board work together to narrow the gap. Now that April is the front month and cash has not budged, it has put the pressure on the board to narrow the basis.
Resistance: 121.25-122.00**, 124.25-124.55***, 126.00-126.70** Pivot: 119.40-119.90