January Feeder Cattle tested support at 146.20 early in the trading session, making the session low just above it at 146.275. It made its way higher the remainder of the day, repeatedly bucking horns with the 200 DMA at 147.725 and dipping lower before making the high at 148.075 at the end of the session. It settled just above the 200 DMA at 147.85. Holding support and settling above the 200 DMA could be bullish for Feeder Cattle. Aggressive traders could buy a strong opening above settlement expecting a break out to the upside. Stops should always be placed in accordance to your account size and risk tolerance. If Feeder Cattle fails at the 200 DMA a retest of support and consolidation around the 200 DMA is possible. December Live Cattle held support at 113.90 but couldn’t take out yesterday’s high. It’s consolidating in the lower part of last Friday’s break down range. A break out above 115.80 could take price up to the 116.55 resistance level. A breakout above here could see price test resistance at 119.15. You could buy a breakout above 116.55 with a stop placed according to your risk parameters. A break down from 113.90 could see price challenge support at 112.35 – 112.075.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Friday, November 16th at 3:00 pm. It is free for anyone who wants to sign up and the link for sign up is below. If you cannot attend live a recording will be sent to your email upon completion of the webinar.
**Call me for a free consultation for a marketing plan regarding your livestock needs.* *
Senior Market Strategist
Walsh Trading, Inc.
RISK DISCLOSURE: THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES AND OPTIONS TRADING. THIS REPORT IS A SOLICITATION FOR ENTERING A DERIVATIVES TRANSACTION AND ALL TRANSACTIONS INCLUDE A SUBSTANTIAL RISK OF LOSS. THE USE OF A STOP-LOSS ORDER MAY NOT NECESSARILY LIMIT YOUR LOSS TO THE INTENDED AMOUNT. WHILE CURRENT EVENTS, MARKET ANNOUNCEMENTS AND SEASONAL FACTORS ARE TYPICALLY BUILT INTO FUTURES PRICES, A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS.