Cattle futures string together another strong session. Will we see follow-through buying or will this be another failed relief rally?
Live Cattle
Technicals (February – G)
February Live cattle futures strung together it’s bets two-day rally since the market was topping out. Certainly, an encouraging sign but the Bulls still have plenty of work cut out for them. The big resistance hurdle comes in from 168.00-168.50. Consecutive closes above this pocket may be enough to cement at least a short-term low in the market, barring any drastic moves in the outside markets or changes in the fundamental landscape.
Resistance: 168.00-168.50****, 174.75-175.25***
Pivot: 166.25
Support: 162.25-162.60***,160.50-161.00**
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.
Feeder Cattle
Technicals (January – F)
January feeder cattle chewed their way into our pivot pocket from 216.40-218.00. IF the Bulls can get out above here with some conviction it could encourage additional upward momentum towards 223.00-224.52. A failure to sustain price action above the pivot pocket could lead to another lower high which could take us back to the low end of the recent range. Today’s price action could be pretty important in setting the tone for the remainder of the year.
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 attempted to rally yesterday but fell flat and retreated to finish the day in our support pocket from 67.15-67.80. If the Bulls fail to defend this pocket in today’s trade, we could see a retest of the recent lows and potentially new lows. The hurdle for the Bulls remains intact from 71.50-72.00.
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.
Oliver Sloup, VP & Co-Founder, Blue Line Futures