Cattle Futures Revisit Resistance
Posted: Aug. 28, 2023, 8:45 a.m.
Live Cattle |
|
Technicals (October- V) October live cattle were able to stage an impressive end to last week's trade, erasing the bulk of the losses from the middle of the month. That has taken prices back to trendline resistance, which is derived from the July 20th contract high, this coincides with our first resistance pocket from 181.52-182.17. If the Bulls can breakout and close above this pocket it's possible to see an extension back into our second resistance pocket, 183.72-184.35 Resistance: 181.52-182.17***,183.72-184.35*** Pivot: 178.62-179.10 Support: 176.20-177.25**** |
 |
Seasonal TendenciesPrior to Thursday and Friday, October live cattle were trading on par with historical seasonal tendencies. |
 |
Commitment of TradersBelow is an updated look at the weekly Commitment of Traders report. As you can see, long liquidation has been a steady trend over the last month. Managed Money's (aka Funds) net long position has shrunken to 89,742 futures and options contracts, the smallest net long since April (thought still fairly aggressive. Broken down that is 102,131 longs VS 12,389 shorts. |
 |
|
|
Feeder Cattle |
|
Technicals (October - V) October feeder cattle futures rallied in the back half of last week which took prices to their highest closing price since August 4th. If the Bulls can use the back half of last week's momentum to trigger a jump start this week, we could see new contract highs. Keep in mind that grain markets are firm in the early morning trade which may act as a headwind for prices. Resistance: 256.00-256.50** Pivot: 252.60-253.00 Support:247.40-247.75***, 241.32-242.00**** |
 |
Seasonal TendenciesOctober feeder cattle futures have been bucking the trend of historical seasonal tendencies, see the chart below for Comparisions versus the 5, 10, 15, 20, and 30-year averages. |
 |
|
|
Lean HogsTechnicals (October - V) October lean hogs had a volatile session on Friday, trading on both sides of unchanged. With Friday's reversal off the highs, we wouldn't be surprised to see a retest of the lower end of the recent range, 77-78. With that said, its lean hogs, so there's not much that would be surprising. Resistance: 80.55-81.50***, 85.50-86.40***** Pivot: 78.45 Support: 77.57-77.80****, 73.52-74.05*** |
 |
In case you haven't already, you can sign up for a complimentary 2-week trial of our complete research packet, Blue Line Express.
Sign up for a Free Trial
Start Trading with Blue Line Futures
Don't have an account with Blue Line Futures?
Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. 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.
Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.
With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500
Like this post? Share it below:
Back to Insights
In case you haven't already, you can sign up for a complimentary 2-week trial of our complete research packet, Blue Line Express.
Free Trial