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Livestock Roundup

October 16, 2019

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Live Cattle (December)

 

December live cattle finished the session higher (again), but it wasn’t all fun and games for the bull camp.  Near the noon hour the market broke lower, falling from 114.175 to 112.625 within 20 minutes. The market managed to rally back and finish the session near the highs of the day, coinciding with our 4-star resistance pocket from 113.85-114.925.  Obviously, a wider pocket than we’d like, but an important one.  This pocket contains the 200-day moving average, a key retracement, and the top end of the range from July.  This coupled with an overbought condition could be enough to halt the rally.  Today’s Fed Cattle Exchange sold 0 of 768, they will be having an auction on Friday too, testing to see if it drums up anymore business.

 

Resistance: 113.85-114.925****

Support:112.00-112.20**, 109.00-109.50***

 

Feeder Cattle (November)

 

November feeder cattle tried to break lower but managed to hold ground into the final hour of trade.  If the bulls can continue to defend 145.00-145.50 through the week, we could see a run towards 149.275-150.15.   With that said, the market is in overbought territory and is ripe for a healthy correction.  Consecutive closes back below 145.00 could spark a round of long liquidation and take prices back towards 140.00.

 

Resistance: 149.275-150.15****

Support: 145.00-145.575**, 140.975-141.35***, 137.325***

 

Lean Hogs (December)

December lean hogs had an inside day, trading within the previous day’s range.  The market seems conflicted with multiple technical indicators coming in from 70-72.  A break lower opens the door for accelerated selling, a break higher opens the door for trend followers to jump on board.  Export sales will be the big-ticket news item tomorrow, bulls are hoping for another big buy from China. 

 

Resistance: 73.975-74.25***, 77.80**

Support: 70.15-71.55****, 68.325-68.75**, 67.30**, 65.50*

 

 

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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.

 

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