Live Cattle
Friday’s trading action had Live Cattle trading down (low – 115.40) to test support at the 13 DMA (115.425) and recovering from there to end the week (116.025) just below resistance at the 50 DMA (116.25). With price between support and resistance, a move above the high or below the low could setup our next move. A rally above the high (116.575), could lead to a test of resistance at 117.825 and then 119.40. A break below the low (115.40), puts 114.60 in play and then 112.65.
Feeder Cattle
April Feeder Cattle tested support (120.30) on Friday, making its low at 120.925 and then rallying to end the day near the high (123.175). A rally above the Friday high could lead to a test of resistance at the 100 DMA (124.20) and then 125.30. A failure to move higher could bring price back down to test the 120.30 support level.
Lean Hogs
Friday’s breakdown through support (67.90) sent price to test the February 23rd low (66.025), stopping just above it at 66.575. It ended the week just above here and continued selling pressure could lead to a test of support at 64.90. Resistance is at 67.90.
For those interested I hold a weekly livestock webinar on Friday, March 10 at 3:00pm. 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.
Ben DiCostanzo
Senior Market Strategist
Walsh Trading, Inc.
Direct: 312.957.4163
888.391.7894
Fax: 312.256.0109
www.walshtrading.com
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.