Are Cattle Going to Fill the Gap?

Research Posts Livestock Round Up

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Cash cattle was strong late last week which helped propel futures prices higher on Friday. Will they continue higher to fill the gap this week?

Live Cattle

Technicals (December – Z)

December live cattle futures saw a big move higher on Friday thanks to a resilient cash cattle trade coming from the South.  That helped prices recover majority of the losses from last Monday.  The Bulls still have their work cut out for them, they want to see continued strength to start the week and continued closes above 182.00-182.50.  If they can achieve that, we could see an attempt at filling the gap which comes in from 183.65-184.625.  This pocket also represents the 100-day moving average and previous support from the first half of the month.  

Resistance: 183.65-184.625****

Pivot:   182.00-182.50

Support: 175.85-176.55***, 172.80-172.90**

Seasonal Tendencies

Below is a look at historical seasonality’s (updated each Monday) VS today’s prices (black line). 

*Past performance is not necessarily indicative of futures results. 

Feeder Cattle

Technicals (January – F)

 January feeder cattle traded on both sides of unchanged on Friday and have done little to repair the technical damage that has been done to the chart over the last several weeks and last week in particular.  The lack of a relief rally is a bit of a caution flag for the Bulls here in the near term.  With that said, support does remain intact from 233.37-234.95 which may offer a decent risk/reward setup for Bulls. 

Resistance: 242.32-243.05***, 246.42

Pivot: 239-240

Support: 233.37-234.95***, 229.00-229.50**

Seasonal Tendencies 

Below is a look at historical seasonality’s (updated each Monday) VS today’s prices (black line).

*Past performance is not necessarily indicative of futures results. 

Lean Hogs

Technicals (December – Z)

December lean hog futures had an impressive day on Friday which took prices up to our resistance pocket, 70.77-70.90.  If the Bulls can achieve a close above this pocket the next upside objective would be the 50-day moving average at 72.15.  A failure at these levels could lead to some consolidation to start the week and a potential retracement of Friday’s move higher. 

Resistance: 70.775-70.90**, 74.00-74.500***

Pivot: 67.32-67.80 

Support: 65.40-65.67**

Seasonal Tendencies 

Below is a look at historical seasonality’s (updated each Monday) VS today’s prices (black line).

*Past performance is not necessarily indicative of futures results. 

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Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. 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.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

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