February live cattle rolled over mid-morning on profit taking that spurred a further technical decline. It may not feel like it, but today was the fourth consecutive lower close and the second lowest closing price since the end of October. Significant technical support is close, we have defined that as 123.125-123.40. A break and close below could trigger another wave of long liquidation and take us closer to the 120 handle. On the resistance side of things, the bulls need to continue to defend the recent highs, 126.925-127.15. Today’s Fed Cattle Exchange was a little more active than usual, they managed to move 860 of the 1189 head. One pen sold for 119 and another at 119.50 in KS. One pen sold at 118 in NE with another pen being passed on at 118 in TX. This is steady to slightly softer than what we saw in the back half of last week’s cash trade....Sign up for your FREE two-week trial!
Feeder Cattle (January)
Since late last week we have been talking about a bearish head and shoulders pattern developing, this week’s price action is giving that more merit. Lower highs and lower lows have been developing which could lead to another wave lower. In yesterday’s report we listed first support as 140.35-140.75, right where we closed. If the bulls cannot defend this pocket, we would expect to see another leg lower with the next objective being....Sign up for your FREE two-week trial!
Lean Hogs (February)
February lean hogs traded in their tightest range of the week, failing near the top end of the recent range, 68.50 give or take. If the bulls are able to chew though this, they have another hurdle a short distance away, 69.875-70.175. If the bulls fail to breakout above resistance, we would expect to see a retracement back to....Sign up for your FREE two-week trial!
Feel free to contact Oliver with any questions or comments
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