Live Cattle (February)
February live cattle had an inside day, trading within the previous day’s trading range, leaving many of our technical support and resistance pockets intact. Technical resistance comes in from last week’s highs, 126.925-127.15, above here is uncharted territory. On the support side of things, 123.125-123.40 was our pocket that was tested and held on the 22nd of November, which remains intact. A close below opens the door for a run towards 120.
Support: 123.125-123.40***, 121.775-122.00**, 117.70-118.325****
Feeder Cattle (January)
January feeder cattle traded on both sides of unchanged, narrowly finishing the session in positive territory. Prices remain trapped within our support and resistance pockets. We have defined resistance as 143.65-144.00, a failure here would mark lower highs and potentially take us to lower lows. It would also start to look like a bearish head and shoulders formation. First support comes in from 140.35-140.75, a break and close below here takes us to retest the November 22nd lows and 100-day moving average, 138.075-138.275. Please sign up for a Free Trial at Blue Line Futures to have our entire technical outlook, actionable bias, and proprietary levels emailed to you each day.
Lean Hogs (February)
February lean hogs caught a big bid today, erasing all of yesterday’s losses. The market has seen three day stretch of volatility while remaining range-bound, perhaps we see will this setup for a breakout or a breakdown. We have had technical support defined as 65.45-66.05 and resistance as 69.875-79.175. A break below or above could spark that bigger directional move. There is a seasonal that started yesterday for the June contract, it is as follows: Selling June hogs on December 1st and buying them back on the 17th; this has been profitable for 13 of the last 15 years with the average gain being about 1.75, or $700.Please sign up for a Free Trial at Blue Line Futures to have our entire technical outlook, actionable bias, and proprietary levels emailed to you each day.