Live Cattle (December)
December live cattle futures had an impressive start to the month, especially when considering the risk-off atmosphere in the outside markets. The market again traded into resistance but has so far failed, keeping that pocket intact from 179.10-179.97. If the Bulls can chew through this pocket, we could see an extension towards the 50% retracement from the recent range as well as the mid-August highs, those levels form a resistance pocket from 181.325-182.07
- Resistance:179.10-179.97*, 181.325-182.07
- Pivot: 177.50
- Support: 175.92-176.10, 173.17-173.87
Chart of Interest
Below is a look at price averages for December live cattle over different time frames. Historically, the first half of September has been friendly to the market, whether or not that plays out this year or not is still TBD, but it’s off to a good start. Past performance is not necessarily indicative of future results.
Feeder Cattle (October)
October feeder cattle futures achieved their highest close since August 15th. An inverse head and shoulders pattern appears to be in the works, whether or not that is able to hold remains to be seen. We see the next significant resistance pocket coming in from 242.75-243.45. This pocket represents the 50% retracement from last month’s trading range as well as the mid-August highs. There are a lot of air pockets above this resistance pocket, so a breakout and close above could spark a bigger relief rally.
- Resistance: 242.75-243.45, 244.90-245.87*
- Pivot: 238.80-239.825
- Support: 236.57-236.75, 232.75-233.95*
Chart of Interest
Below is a look at price averages for October feeder cattle over different time frames. Historically, the start of September has been friendly to the market, whether or not that plays out this year or not is still TBD, but it’s off to a good start. Past performance is not necessarily indicative of future results.
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Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.
One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.
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