Thompson: Feeder Cattle Test Resistance, Corn Grinds Lower
11/06/2009 08:44AM
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LIVE CATTLE: Dec
After probing for new highs the cattle complex started to fade, led mostly by the back months. Today $86.60 is now the resistance and critical point to the upside of the Z live cattle. Trade may push up against this area, but again will need to move significantly through or close above it to indicate that another leg higher in the cattle is forthcoming. An open below $85.30 dips the market to $85.90 and a break of $85.90 puts pressure on the complex down to $85.35.
Support: 85.90 & 85.35 Resistance: 86.60 & 87.25
Long Term Trend: Up above 86.37 Short Term Trend: Down below 86.60
FEEDER CATTLE: Jan
Jan feeders tested resistance at $97.37 before stalling. Again today this area should be good resistance on a daily closing basis. An open above this area could allow an intraday push up to $97.82, but once tested the market should settle back down. Pull backs today should find support at $97.00 and the $96.42. A daily close back below $96.42 would be considered a reversal in the market and trade would be subject to falling back to $94.30.
Support: 97.00 & 96.42 Resistance: 97.37 & 97.82
Long Term Trend: Up above 96.47 Short Term Trend: Up above 96.00
CORN: Dec
The Dec corn spent most of the day grinding lower in slow erosion. The inability of the overnight trade to push higher will keep the market on the defensive today. Rally attempts could sure try and reach back up into the 382 area, but should stall in this area. Technically the market needs to close above this area on a daily basis in order to turn the market back friendly. I would expect the market to now trade down and test support at 368. Below 368 the market could quickly dip back to 355 over the course of next week's trading.
Support: 375, 371, & 368 Resistance: 378, 380, & 382
Long Term Trend: Up above 382 Short Term Trend: Down below 387
Hogs: Dec
The Dec hogs finally let go a broke late in the session once they traded below $57.45. Today a rebound back into the $57.30 area is possible, but if it stalls in this area the market will then turn lower with the expectation of testing next daily support at $55.30. A rally that trades back through $57.30 rather easily will again point to higher trade that will most likely take out previous highs.
Support: 56.77 & 56.00 Resistance: 57.30 & 57.97
Long Term Trend: Up above 57.30 Short Term Trend: Up above 57.70
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.