LIVE CATTLE: Oct
Oct cattle were unable to trade down below support, but didn't really show any strength considering limit up trade in the hog complex. Today above $87.05 the market will be supportive with the first target today being $87.67. Above $87.67 continuation to $88.05 is most likely. On the downside the market should hold support of $86.72, but if this areas fails and the daily close is below it will shift back to bearish selling off down to $85.87.
Support: 87.05 & 86.72 Resistance: 87.67 & 88.05
Long Term Trend: Up above 86.72 Short Term Trend: Up above 86.95
FEEDER CATTLE: Oct
Feeders were under pressure from lack luster live cattle trade and much higher corn. An open back above $98.50 will slow selling and most likely allow a bounce back to $99.00. A daily close above $99.00 would then take the market back to $100.00 by the end of the week. Reluctance to trade back above $99.00 will begin to shift the market back to secondary selling for a drop to $96.55.
Support: 98.37 & 97.95 Resistance: 98.50 & 99.02
Long Term Trend: Up above 98.37 Short Term Trend: Up above 98.57
Short covering, stops, and mix variations in weather models exploded the corn higher yesterday. As usual the market probably went to far to fast for the time being and could see a pull back. What has to be decided is if this is the start of something larger or was it just a rally in a bear market. I would expect the market to try and test 347 again today, a failure to breach this level will turn the market over for a break back down to the 330 level, in which the market will need to be watched closely. If the market doesn't test 347 and breaks below 341 then the retracement would be under way.
Support: 342, 337 & 333 Resistance: 347, 351 & 353
Long Term Trend: Up above 323 Short Term Trend: Up above 325
Dec hogs traded limit up once the market took out resistance. Near term technicals are showing signs that the market could be getting toppy a $53.00 and a pull back into the $51.00 area would be possible. On a daily basis the market would have to close back below $51.00 in order to turn back bearish.
Support: 52.00 & 51.40 Resistance: 52.82 & 53.25
Long Term Trend: Up above 51.00 Short Term Trend: Up above 50.40
Brock Thompson Trading, 2525 Lakeview Dr. Amarillo, TX 79109, email@example.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.
LIVE CATTLE: Oct