February live cattle spent the day under moderate pressure, remaining trapped within the recent range, 124-126. Today’s session marked the 25th of the last 27 sessions that we have closed between 123.85 and 126.00. If we continue to defend the 126 level, we could form a bearish head and shoulders pattern, a break below the low end of the range would confirm that. The next line support pocket comes in from 121.775-122.35, below that is a lot of air. We started to get some cash trade developing in the south with whispers of 118-119 in Kansas and 118 being passed on in Texas. Tomorrow’s Fed Cattle Exchange has 1,068 head offered. If we start to see cash stall and/or retreat, that could be a catalyst to the board coming off. There are a bunch of ways to slice the pie, futures, options or a combination, feel free to reach out. If you want to be long the market, there’s a seasonal coming up that is in your corner, it is as follows:....Sign up for your FREE two-week trial!
Feeder Cattle (January)
January feeder cattle managed to creep higher, poking its head above the 50 and 200 day moving average but failing to stage a convincing breakout. The more significant resistance pocket we are watching comes in from 143.275-143.70. This is the right shoulder of a potential head and shoulders pattern (bearish). The bears have the technical advantage until we see consecutive closes above this pocket. On the support side of things, 139.625-139.90 is the first line in the sand but the more significant pocket comes in from....Sign up for your FREE two-week trial!
Lean Hogs (February)
February lean hogs finished the day higher on the back of some positive trade headlines and technical support holding in yesterday’s session. If the bulls can continue to defend support, we could see the e market work back towards the top end of the recent range, 69.325-70.05. A conviction close above here is what the bulls really NEED to see, that could spark a bigger rally, towards....Sign up for your FREE two-week trial!
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