Cattle futures string together a third consecutive day of gains, is it safe to say the low is in?
Live Cattle
Technicals (February – G)
February live cattle futures posted their third consecutive day of gains, the longest positive streak in nearly a month. That rally took prices right up into our 4-star resistance pocket, 168-168.50, which will act as a pivot pocket in today’s trade. If the Bulls can continue to defend this area it would bode well for an extension of the relief rally with the next upside target coming in closer to 175.00.
Resistance: 174.75-175.25***
Pivot: 168.00-168.50
Support: 166.25**, 162.25-162.60***
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 get out above our pivot pocket from 216.40-218.00 which opens the door for an extension towards 223.00-224.52. Right now, it looks like a short-term low is in, a break and close back below our pivot pocket would neutralize that bias.
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 hogs continue to chop around, leaving many of the support and resistance levels unchanged from the previous day’s report. 67.15-67.80 on the downside and 71.50-72.00 on the upside. We continue to be more cautious on this market so we wouldn’t be surprised to see the breakout of the range come on the downside.
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