February live cattle traded in its tightest range in some time, leaving us little changed (again) on the technical landscape. Resistance remains intact from 127.225-127.90, above there is uncharted territory and finding meaningful resistance becomes more difficult. On the support side of things, 124.55-125.10 is the pocket we are keeping an eye on, a break and close below there could trigger long liquidation from the funds. We still like leaning on the short side against technical resistance, but the conviction has dwindled with the market being mostly range-bound for the past several months. Today’s Fed Cattle Exchange has 561 head offered. The Cold Storage report will be out after the close, but the big-ticket item this week is the Cattle on Feed report.
Support: 124.55-125.10***, 123.125-123.85****
Feeder Cattle (March)
March feeders finished the day in negative territory but managed to defend Friday’s lows and the 50-day moving average. A break and close below here would leave the door open for a retest of the bottom end of the range, we have defined that as 142.85-143.125. Resistance on the top side remains intact from 146.85-147.975.
Support: 142.85-143.125****, 141.55-141.775**
Lean Hogs (February)
February lean hogs have been consolidating for the last several sessions as the bulls try to continue defending the December lows of 65.40. A break and close below here leaves risk to the August lows of 63.675. First resistance comes in from 68.00-68.225, consecutive closes above here would start to repair the chart and take us back towards 70.00-70.40, the much more significant (trend-changing) resistance pocket.
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