June Lean Hogs continued its rally today, gap opening higher and never looking back reaching the session high at the end of the day at 95.075. This is just below the 95.30 resistance level and puts this level on notice for trading for Thursday. If price can trade above here on the open, another strong rally could take us to the March 22 high (97.825) which is just below the 61.8% resistance level at 98.00. A failure to generate upward momentum could see price consolidate within the Wednesday range.
June Live cattle dipped below the 119.15 support level, making the low at 118.70. It settled at 119.00. It is still hugging this support level so any recovery from here could see price test 120.80. A breakdown from here could see a test of the 200 DMA at 117.985. This should be a strong support level. Cattle has formed a ledge between 119.15 and 120.75. This could provide the energy needed to either breakdown below the 200 DMA and make its way to lower support levels or setup a run to the 21 DMA now at 123.872.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Friday, April 5 at 2:30pm. 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.