Wrangled: May Feeders

John LunneyGeneral Commentary

May Feeders

    Following the drubbing from mid last week the feeder cattle managed to keep it relatively together in today’s session. Prices fought off the 100 day of roughly 148 to settle slightly lower at 148.950 and managed to close just above an hourly channel line. The market will have to hold above that 148 level to stave off any further selling pressure. First upside projection comes in at +/-151.300. This is a tough spot and I’d imagine they’ll get turned back from here. As mentioned earlier, a break below 148 won’t look healthy and I’d be looking for a follow through to 145.500-144.500. This area will have to hold up and I believe it will sustain thrust. On the other hand, a close below will open the door for further pressure. My downside objective would be +/-135.

Please feel free to contact me at Walsh Trading to discuss both futures and suggested options strategy to take advantage of this scenario. # 312-957-8108