Live cattle and feeder cattle futures are continuing to buck the trend of seasonal weakness, putting together a multiday winning streak that has taken prices back near the highs.
Technicals (October- V)October live cattle futures were able to chew through trendline resistance but backed off the highs and ended the session right on it, which coincides with our resistance pocket 181.52-182.30. If the Bulls can chew through and close above this pocket, that would open the door for a potential run at our next resistance pocket, 183.72-184.35.Resistance: 181.52-182.30***,183.72-184.35***Pivot: 178.62-179.10 Support: 176.20-177.25****
Seasonal TendenciesPrior to Thursday and Friday, October live cattle were trading on par with historical seasonal tendencies.
Technicals (October – V)October feeder cattle shrugged off the higher grain market and beelined it higher, posting new contract highs. New highs mean we are in Uncharted territory, which makes the task of finding the next meaningful resistance pocket rather difficult. Yesterday’s move higher has brought the RSI up to 64.38, below what technicians refer to as being “overbought.”Resistance: 260*Pivot: 256.00-256.50 Support: 252.60-253.00**, 247.40-247.75***
Seasonal Tendencies October feeder cattle futures have been bucking the trend of historical seasonal tendencies, see the chart below for Comparisions versus the 5, 10, 15, 20, and 30 year averages.
Lean HogsTechnicals (October – V)October lean hogs were able to bounce back and recover off of Friday’s losses and then some. Friday’s high will act as today’s first hurdle, that comes in at 83.125. If the Bulls can chew through that pocket, it would open the door for a retest of the 200-day moving average at 85.24.Resistance: 83.12**, 85.50-86.40*****Pivot: 80.55-81.50 Support: 77.57-77.80****, 73.52-74.05***
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