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CME Live Cattle, Lean Hog Futures Close Higher Monday

16 September 2013
Jim Wyckoff Commentary -  TheCropSite

ANALYSIS - Chicago December Live Cattle futures closed up $0.05 at $129.20 Monday. Prices closed near mid-range today.

The bulls have the near-term technical advantage at present. However, on fresh, significant price weakness a bearish double-top reversal pattern could play out on the daily bar chart. Bulls' next upside price "breakout" objective is to push and close prices above solid resistance at the August high of $130.80. The next downside technical breakout objective for the bears is pushing and closing prices below solid technical support at $128.00. First resistance is seen at today's high of

$129.37 and then at $129.75 and then at $130.00. First support is seen at Monday's low of $129.00 and then at last week's low of $128.45. 

November feeder cattle closed up $0.02 at $160.25 Monday. The feeder bulls have the solid near-term technical advantage. The next upside price breakout objective for the feeder bulls is to push and close prices above solid technical resistance at the August high of $160.85.

The next downside price breakout objective for the bears is to push and close prices below solid technical support at last week's low of $158.00. First resistance is seen at the August high of $160.85 and then at $161.00. First support is seen at $160.00 and then at $159.50.

CME Lean Hog Closed Higher

December Lean Hog futures closed up $1.22 at $88.47 Monday. Prices closed near the session high and hit another fresh contract high. The hog bulls have the strong near-term technical advantage.

While there are no strong early technical clues to suggest a market top is close at hand, the market is short-term overbought, technically, and is due for a downside correction soon. The next upside price breakout objective for the hog bulls is to push and close prices above solid chart resistance at $90.00.

The next downside price breakout objective for the bears is pushing prices below solid technical support at last week's low of $86.60. First resistance is seen at Monday's contract high of $88.50 and then at $89.00. First support is seen at $88.00 and then at Monday's low of $87.55.

TheCattleSite News Desk

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any traders and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 1. Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.



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