Cattle futures snap back, is the low in or is this just going to be another failed relief rally?

Live Cattle
Technicals (February – G)
February live cattle futures were able to recover Monday’s losses in yesterday’s trade, but it’s likely that Bulls are a little gun shy after the last few relief rallies failed to materialize to anything meaningful. The Bulls need to see consecutive closes above 174.75-175.25 in order to start repairing some of the technical damage that has been done over the last 2 months.
Resistance: 174.75-175.25***
Pivot: 168.00
Support: 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)
January feeder cattle were able to rally back into positive territory for the week after getting smothered to new lows on Monday. As mentioned in the live cattle section, the Bulls still have their work cut out for them. They need to see consecutive closes above 223.00-224.52 to make a believer out of those who are waiting for a confirmation of a near term low.
Resistance: 223.00-224.52***, 232.20-233.50***
Pivot: 216.40-218.00
Support: 209.00-210.00**

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 (February – G)
February lean hog futures broke back lower yesterday after failing to get out above our pivot pocket from 71.50-72.00. That will continue to be the big hurdle for the Bulls to overcome. A continued failure could send prices back down to the recent lows.
Resistance: 74.00-74.500***
Pivot: 71.50-72.00
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.Â

Oliver Sloup, VP & Co-Founder, Blue Line Futures