March Feeder Cattle tested support early in the trading session, declining to 142.725 which just above the 142.40 support level. Price reversed course and challenged resistance at 145.05, reaching 144.975 for the session high. It settled at 144.30, right at the 144.20 key level. If this level holds look for a retest of resistance at 145.05 and then 146.20. A failure from 144.20 could see price revisit support at 143.50 and then 142.40. February Live Cattle held the rising 21 DMA (121.325), making the low just above it at 121.35. It pressed higher passing resistance at 122.825 on its way to the high at 123.075. It pulled back and settled at 122.575. The rising 21 DMA could key the price action on Wednesday. Holding above it could see price challenge resistance at 122.825 and then 124.30. A failure and price could break down to support at 120.80 and then 119.15.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, December 20th 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.* *
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.