rounded corner
rounded corner
top border

Livestock Levels


Bookmark and Share

Live Cattle

The June Live Cattle contract traded to the 61.8% retracement level (116.56) of the move from the January 19th high (121.45) to the April 5th low (108.675) on Tuesday, April 18, 2017. It peaked at 116.90 in the first 45 minutes of trading and then collapsed to the low of the day at 115.35 before spending the remainder of the day trading between 116.125 and the low. The session formed a Doji candle, which indicates indecision, and with the failure at the 61.8% retracement level, could signal a potential short term top in the market. If the June contract trades below the Tuesday low, a test of the 50% retracement level (115.0625) and then the 100 DMA (114.775) is possible. The 50 DMA (114.60) is next and the 8 DMA is at 113.525. If the market rebounds and takes out the Tuesday high, at test of resistance at 117.825 and 118.50 is possible.

Feeder Cattle

The May Feeder Cattle also staged an early rally before breaking down from the high (141.875) and trading to the low of the day (139.375) and then consolidating the remainder of the trading session. It formed a spinning top candle, indicating the bulls may be losing control of the market. Trading below the Tuesday low could send price down to test support at the 8 DMA (137.05) and then 135.225. The 13 (134.825) and 21 (134.325) DMAs are nearby. A rally above the high could see price test resistance at 142.30, 143.20 and then 144.175.

Lean Hogs

The June Lean Hogs broke down below the 72.875 resistance level, trading below the 50 DMA (70.875) and making the low for the day at 70.625. It wasnt able to stay below the support level as it recovered from the low and ended the session above the 50 DMA at 71.35. The 50 DMA will be the pivot on Wednesday. If Lean Hogs can break below the 50 DMA it can test nearby support levels at 70.425 (TL), 70.00 and 68.575. Closing below the trendline could be a bearish signal. A rally above the high could see 72.875 tested and panic short covering could see price reach 74.10.

For those interested I hold a weekly livestock webinar on Wednesday, April 21at 3:00pm. 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.

Sign Up Now

Ben DiCostanzo

Senior Market Strategist

Walsh Trading, Inc.

Direct: 312.957.4163

888.391.7894

Fax: 312.256.0109

bdicostanzo@walshtrading.com

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.



Recent articles from this author



About the author


Ben DiCostanzo
Senior Market Strategist
Walsh Trading

I began my career in the Securities industry working as a runner on the floor of the New York Stock Exchange while I attended Pace University. I then started working for Salomon Brothers in their Government Bond Trading arena. After graduating from Pace University with a degree in Accounting, I transferred to Chicago and became a member of the Chicago Mercantile Exchange utilizing my experience to execute trades and manage risk for institutional clients as a broker for Salomon Brothers on the trading floor. I then embarked to trade for my own account in the stock indices pits as a local before moving off the floor to aid and assist individual clients in their trading endeavors. I now work at Walsh Trading holding a series 3 broker’s license whose duties include being the firm’s Chief Market technician.

I understand that every client's needs are different, and I pride myself in tailoring my service to each client's unique circumstances and needs. Individual client experience, risk tolerance, and capital all play a role in how I approach the markets. I am involved in all markets using technical analysis to find opportunities. My approach is driven by the principles of capital preservation.

My trading philosophy is that if you can recognize and manage the risk, you have a better chance to be successful in trading. I advise clients to always use stops as money management in my opinion is the most important ingredient in trading commodities.

Published by Barchart
Home  •  Charts & Quotes  •  Commentary  •  Authors  •  Education  •  Broker Search  •  Trading Tools  •  Help  •  Contact  •  Advertise With Us  •  Commodities
Markets: Currencies  •   Energies  •   Financials  •   Grains  •   Indices  •   Meats  •   Metals  •   Softs

The information contained on InsideFutures.com is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Barchart.com. Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. InsideFutures.com is not a broker, nor does it have an affiliation with any broker.


Copyright ©2005-2018 InsideFutures.com, a Barchart.com product. All rights reserved.

About Us  •   Sitemap  •   Terms of Use  •   Privacy Policy