LIVE CATTLE: Oct
After the index funds quit selling, the cattle market was able to come off of its lows and close higher on the day. Yesterday's close should support follow through buying today. Any dip should stay above $86.70 in order to keep rally chances alive. A breach of $86.70 sends the market to $86.30, in which a close below this area is bearish down to $85.20 into next week. On a rally today expect the market to test the $87.85 area with an outside chance of $88.30.
Support: 86.70 & 86.30 Resistance: 87.32 & 87.85
Long Term Trend: Down below 87.57 Short Term Trend: Up above 86.70
FEEDER CATTLE: Oct
A big rally in the feeders led the market back to resistance at $98.50. The market may initially struggle to get through $98.50 and could set back to $98.10. A significant break or a daily close below $98.10 could attract selling taking the market back down to $96.90. If a test of $98.10 occurs and holds, then look for the market to rally to $99.05 in the near term and $99.80 over the next few days.
Support: 98.10 & 97.87 Resistance: 98.50 & 99.05
Long Term Trend: Down below 98.50 Short Term Trend: Down below 99.40
Breaks in the corn so far have been unable to see any follow through pinning the market on its lows. The market is still in a consolidation phase looking for direction. An open and stable trade today above 318 keeps support under the market with a bounce to 323 and 327 possible. A break of 318 would lead to 316, in which trade below this and/or a daily close below 316 would send the market to 311.
Support: 318, 316 & 311 Resistance: 323, 327 & 333
Long Term Trend: Up above 316 Short Term Trend: Down below 320
The overnight rally in the hog complex may have gone too far for the time being. The Dec contract is struggling to hold above $47.80 for any length of time. I do think there is a possibility for the market to have one more push that could take it to longer term resistance at $48.70 before failing. It would take a daily close below $45.50 today to turn the market back bearish.
Support: 46.80 & 46.40 Resistance: 47.40 & 48.32
Long Term Trend: Up above 45.50 Short Term Trend: Up above 46.82
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: Oct