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Are Livestock Futures a Buy?


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Live Cattle (August)

August live cattle retreated early yesterday but managed to close off the lows and finish in positive territory. The ability to hold technical support while we consolidate is shaping up to look like a bull-flag on the chart. Technical resistance remains intact, the bulls want to see a conviction close above 99.85-101.90 to encourage another surge higher. This is a wider pocket than we would like to use, but there are so many significant indicators within these price points that we chose to make one wide pocket, instead of several tighter pockets right next to each other. This pocket contains the 50% retracement (middle of the range from contract highs to contract lows), previously important price points (from last week, to last fall) and the 100-day moving average.....Contact us for the FULL report!


Cattle on Feed will be out today, after the close. Estimates are as follows: On Feed 94.8%; Placements 76.3%; Marketings 74%.


August

Resistance: 104.40-105.97***, 107.925-109.325****

Pivot: 99.85-101.90

Support: 95.10-95.45****, 92.525-93.675***, 89.05-90.025***


Feeder Cattle (August)

Feeder cattle finished yesterdays session on uneasy footing as the market treads near significant support. Wee see that as 127.25-128.45. This pocket represents a key Fibonacci retracement, the 50-day moving average, and previously important price points. If you want to be long Feeder Cattle, this is a decent risk reward spot to consider buying. With that said, the Bulls MUST defend this pocket, a failure to do so could break us down towards 124.....Contact us for the FULL report!


Resistance: 137.70-139.125****, 145-146***

Pivot: 132.75-133.725

Support: 127.25-128.45***, 123.475-124.30***, 121.00-121.65****


Lean Hogs (June)

The bulls managed to hold our 4-star technical support pocket this week which invited buyers back into the market yesterday, taking prices back to our pivot pocket. If the bulls can achieve consecutive closes above this pivot area, we would expect to see another leg higher and a potential run towards the recent highs of 66.025.....Contact us for the FULL report!


Resistance: 61.00-62.10***, 66.025***, 68.75****

Pivot: 59.25-59.95

Support: 54.775-55.275****, 51.325-51.625***


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Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.



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About the author


Oliver Sloup is Vice President of Blue Line Futures, a leading futures and commodities brokerage firm located at the Chicago Board of Trade. Blue Line Futures mission is to put the customer first, and that means bringing YOU the best customer service, consistent and reliable research and state of the art technology.  Oliver has been a guest on CNBC and Bloomberg, among others.  Oliver has over a decade of trading experience. Prior to Blue Line Futures, Oliver worked as the Director of Managed Futures at iiTRADER.

 

 

Contributing author since 10/6/17 

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