Live Cattle (December)
It’s the same story, just another day. Live cattle futures continued higher yet again, marking its 27th higher close in the last 36 sessions. Other jaw-dropping statistics include the fact that we’ve rallied an average of .52 for the last 36 sessions. The market has been overbought for the better part of the last two and a half weeks and there’s no real sign of it ending. The slow grind higher is like a slow grind lower, not conducive for a top or a bottom. The bear camp needs to see capitulation and a blow-off top style of trade. There is some resistance from 117.85-118.25, above that is contract highs all the way up at 124.00-124.175. On the flip side, first support comes in from 114.25-114.925...Blue Line Futures to view our entire technical outlook and actionable bias and levels.
Feeder Cattle (January)
January feeder cattle have been more tempered than the fat cattle as futures have more or less been consolidating over the past two weeks. Resistance comes in from 142.225-143.00. This pocket represents the recent highs but also the top end of the range from July. The RSI (relative strength index) is at 61, not “overbought” but still relatively high....Blue Line Futures to view our entire technical outlook and actionable bias and levels.
Lean Hogs (December)
December lean hogs ran stops below the recent lows and managed to prevent an all-out collapse, at least for now. If the bulls cannot defend support on a closing basis through the rest of the week, we could see a run at the September 11th gap, 61.525. If you want to be long the market, this would be the spot to consider targeting on the first test. By first test, we mean you want to see a springboard like trade-off of support, a failure to achieve that could lead to additional pressure.
Resistance: 69.30-70-15***, 73.975-74.25***, 77.80**
Support: 64.15-65.00***, 63.075**, 61.525****