Thompson: Bearish Feeder Cattle, Corn Correction
11/02/2009 08:28AM
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LIVE CATTLE: Dec
Dec cattle finished out the weak and under pressure. To start the week $86.30 is going to be a critical pivot point. An open underneath this area will keep the market on the defensive with $84.80 as the next area of support followed by $84.30 by next week. A push back through $86.30 allows $87.05 intraday and a daily close above $86.30 would signal the possibility of a low being put in the market. If the market closes above $86.30 I would like to see a conformation close above $87.05, and if that is the case you could expect the $90.00 area over the next few weeks.
Support: 85.60 & 84.80 Resistance: 86.30 & 86.65
Long Term Trend: Down below 86.65 Short Term Trend: Down below 87.05
FEEDER CATTLE: Jan
After testing resistance early last week the January feeders closed back through support on Thursday and Friday. To start the week the market is bearish below $95.50 and could easily slide back to $94.25. An open or trade through $95.50 would allow $95.95 intraday working back up to $96.50 resistance. At this time only a close back above $97.40 would technically turn the market bullish.
Support: 95.02 & 94.45 Resistance: 95.50 & 95.95
Long Term Trend: Down below 96.50 Short Term Trend: Up above 95.80
CORN: Dec
The correction in the Dec corn is now holding support at 364. If the market closes below this area then the next area of support will be 355 then 347 going into the next few weeks. If this area holds and proves to be good support, then look for the market to push back up and test 378 followed by 385. At this time only a close back above 385 would be considered technically bullish and would support a run to new highs in the market.
Support: 365, 358 & 356 Resistance: 369, 373 & 378
Long Term Trend: Down below 387 Short Term Trend: Down below 376
Hogs: Dec
After an early morning run Dec hogs spent most of late Thursday and Friday trading sideways to lower. Today the market needs to hold above $56.50 in the near term. An open above this area holds the market firm with the ability to push up to $57.85. An open below this area allows $56.00, but only a close below this area opens the door for a larger correction that could reach down to $54.00.
Support: 56.50 & 56.00 Resistance: 56.95 & 57.62
Long Term Trend: Up above 56.05 Short Term Trend: Up above 56.57
Brock Thompson Trading, 2525 Lakeview Dr. Amarillo, TX 79109, brock@brockthompsontrading.com (806)-350-2400
Make note that intra-day support and resistance prices change throughout the day, so if you have any questions during market hours please give me a call for an update.
These forecasts are solely the opinion of the author and make no representation as to how the market will actually trade. There is substantial risk of loss in trading futures and options; therefore you should carefully consider whether trading is appropriate for you in the light of your financial situation.