In a light trading session February Live Cattle continued its break out to the upside, trading to a new high at 122.55 just below resistance at 122.825. Continued upward pressure could see price test resistance at 124.30. A pullback from the high could see price fall back into the 121.625 118.575 trading range. January Feeder Cattle continued its recovery after yesterdays new low and test of the 143.50 support level. It treaded past resistance at 145.05 today, making the high at 145.675. The next test is the 146.20 resistance level and then the 200 DMA at 147.60. Support is at 144.20 and then 143.50. February Lean Hogs tested support at the 200 DMA (65.175) early in the trading session, making the low at 65.125. A strong bounce took price past resistance at 67.80 to the session high at 68.10. It settled right at resistance (67.75) and could be the key level for trade on Thursday. A break out above here could see price test the Monday high at 68.825. Resistance then comes in at the November 20 high at 69.50 and then 70.125. A pullback has support at 66.55 and then the 200 DMA.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Friday, December 6th 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.
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Senior Market Strategist
Walsh Trading, Inc.
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.