Live Cattle (June)
June live cattle made new contract highs yesterday which opens the door for another wave higher. How high? TBD. We look at previous interactions between buyers and sellers to find support and resistance levels. With prices at new highs, there is no previous interaction to go off, so it becomes a momentum and money flow trade. Previous resistance now becomes support, that comes in from 123.00-123.50. The Bulls want to defend this going forward to keep the momentum in their court. A failure to defend it would not mean that the top is in, it would just start to neutralize the short-term technical outlook. Asking prices to have jumped to 122 to start the week.
Resistance:
Support: 123.00-123.50***, 119.00-119.525**, 116.425-116.80***
Feeder Cattle (May)
May feeder cattle managed to get out above technical resistance which bodes well for the technical landscape. Grains are firm in the overnight, which may put a little headwind in the market, but we would not expect anything significant.
Resistance: 153.175-153.475**
Pivot: 151.275
Support: 149.475-149.60**, 147.35**
Lean Hogs (June)
June lean hogs made new contract highs and reversed off the highs to finish in negative territory. We have been spectators for the last push higher but are starting to look at various options strategies to the short side for some clients who want to wade into those waters.
Resistance: 106.725-107.40**
Support: 103.00-103.875***
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Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
