Cattle futures continued to get slaughtered in Monday’s trade. Is there any end to the selling in sight?
Live Cattle
Technicals (February – G)
There are several old sayings that come to mind when looking at a cattle chart, such as “escalator up, elevator down”, “don’t catch a falling knife”, and “the market can remain irrational longer than you can remain solvent”, to name a few. With a move like this, emotions are high, which puts fundamentals and technicals on the back burner. There will be some great opportunities when the dust settles, but whether that is here or 10-20 lower is the great unknown.
Resistance: 180.325-181.00*** 182.00-182.50**
Pivot: 175.85-176.55
Support: 168.00**, 166.25**
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)
We will reitterate what we posted in the livestock section. There are several old sayings that come to mind when looking at a cattle chart, such as “escalator up, elevator down”, “don’t catch a falling knife”, and “the market can remain irrational longer than you can remain solvent”, to name a few. With a move like this, emotions are high, which puts fundamentals and technicals on the back burner. There will be some great opportunities when the dust settles, but whether that is here or 10-20 lower is the great unknown.
Resistance: 230.70-231.42***, 233.37-234.95***
Pivot: 216.40-218.00
Support: 210.00-210.50**
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)
Lean hogs look like the sane one in the livestock market which isn’t always the case. December live cattle were able to defend support to start the week which keeps the Bulls hopes alive. A break and close below opens the door for a retest of the recent lows. The Bulls really want to see a close back above 70.00-70.25 to give them some breathing room with the potential for a run back above 74.00.
Resistance: 74.00-74.500***
Pivot: 70.00-70.25
Support: 67.15-67.80***, 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.
Oliver Sloup, VP & Co-Founder, Blue Line Futures