Live Cattle
April Live Cattle traded in a tight range on Monday, March 13, 2017 as it was unable to overtake trendline resistance at 118.70 reaching 118.425. The tight range is the narrowest in the past 7 days and it ended the day near its low and below 117.825 resistance once again. A failure from the Monday low (117.575) could see price test support down at the 8 DMA (116.25). Breaking below the 8 DMA could lead to a test of trendline support at 114.70 and then the 21 (113.375) and 50 (112.375) WMAs. If trendline resistance (118.70) is taken out a test of the January 20 high (119.875) is possible, then the January high at 121.45 becomes the focal point. Continued strength could push price towards resistance at 124.675.
Feeder Cattle
April Feeder Cattle had another strong rally on Monday, trading to 128.85 before an end of the day selloff took price down to the middle of the day’s range. It ended the session at 127.90 and a breakdown from here could see price revisit trendline support at 127.125 and then the 13 WMA at 125.90. Support then comes in at 125.30 and then the 100 DMA at 124.65. A rally above the Monday high could lead price to test the January high at 131.75. The next level is at 133.00.
Lean Hogs
April Lean Hogs burst free from its 2 inside week candles on Monday, trading and ending the day above resistance at 70.00. The breakout to the upside could lead to a test of resistance at 72.875. A breakout from this level could send price up to resistance at 77.90. A breakdown from 70.00 could see Lean Hogs consolidate and test support at the 8 WMA (69.225) and then 67.90.
For those interested I hold a weekly livestock webinar on Friday, March 17 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.