LIVE CATTLE: Dec
The last few days action has been friendly the cattle complex. The market continues to work a correction off of fresh new lows, but needs a good solid close back above $86.10 in order to confirm a trend change. Today expect overhead resistance from $85.80 to $86.12, in which above the latter expect $86.45. If the market stalls below $85.80 then expect dips that come back and test $85.20. A reversing close back below $84.90 would resume the down trend.
Support: 85.20 & 84.90 Resistance: 85.80 & 86.12
Long Term Trend: Up above 84.55 Short Term Trend: Up above 84.45
FEEDER CATTLE: Nov
Nov feeders have moved back up to early week highs. Short term charts are beginning to look friendly as long as the market stays above $93.50. The market should see early support from a lower corn trade in the overnight session. An open above $94.12 will most likely foster buying to $94.90. A close above $94.90 allows $96.00 over the next few sessions. The inability to take out $94.90 takes the market for a retest of $93.50.
Support: 93.85 & 93.50 Resistance: 94.65 & 94.90
Long Term Trend: Down below 96.40 Short Term Trend: Up above 93.50
Corn was lower in the overnight session even with the U.S. Dollar trading lower. The market was in dire need of relieving an overbought condition. Given the current break the 381 level will now become and area of resistance for the market. To confirm that a larger correction is at hand the market needs to close below 373. If this occurs then I will be looking for the market to pull back somewhere close to the 350 area. A trade that pushes back up through 381 would be considered bullish and would allow for new highs.
Support: 377, 373 & 367 Resistance: 381, 383 & 387
Long Term Trend: Up above 373 Short Term Trend: Up above 373
Hogs have steadily inched higher the last few sessions. The market needs to correct in order to relieve it's over bought condition as well. A set back to $51.90 wouldn't be a surprise. Today watch for a break of $53.90 as an indication that the market wants to break. If the market stays under this area then expect $52.87 intra day. A push higher that takes the market through $54.40 would be seen as bullish, then expecting $55.20.
Support: 53.90 & 52.87 Resistance: 54.40 & 55.20
Long Term Trend: Up above 53.65 Short Term Trend: Up above 52.50
Brock Thompson Trading, 2525 Lakeview Dr. Amarillo, TX 79109, firstname.lastname@example.org (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.
LIVE CATTLE: Dec