LEZ8: -.925 at 112.725, trading in a range of 2.40
GFU8: -1.325 at 149.354, trading in a range of 3.25
GFV8: -.675 at 149.40, trading in a range of 3.70
Cattle Commentary: In yesterday’s commentary we mentioned looking for a spot to flip short in the coming days. That selling opportunity didn’t last terribly long, October live cattle futures marked their high in the first few minutes of trade and sold off from there. We weren’t able to capitalize like we wanted to, but we live to see another day. We would still like to set up on the sell side but are waiting for better prices (see full technical breakdown below). Cash bids are starting the week near 106, this would be a softer cash than last week if traded. Tomorrow’s Fed Cattle Exchange has 751 head offered, this could out a more defined line in the sand.
Feeder cattle failed at resistance om the open and the selling escalated shortly after. The market found support near the 200-day moving average which came in at 147.40. We continue to believe the bears are in control until the bulls can chew through 152.075-152.35 with conviction on consecutive closes. This pocket represents the recent highs, a failure to chew through here would market lower highs. A failure to breakout will likely invite sellers back into the market. A break and close back below 148.15 opens the door for an acceleration towards....Click this link for a Free Trial at Blue Line Futures to view our entire technical outlook and actionable bias and levels.
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