August live cattlefutures managed to work out above our pivot pocket which helped extend gains through the remainder of the session, opening the door for a run at our resistance pocket from 107.00-107.25. So, what changed overnight fundamentally? Many analysts will do a good job in providing hindsight analysis, but the real answer is: not much. The market has been beaten up repeatedly over the past several months and this was part of an overdue relief rally. Cash trade has yet to pick up, but we would not be surprised to see things stabilize. We continue to believe there is value in live cattle and have been more aggressive with clients in the December and February contracts.
Resistance: 107.00-107.25***, 109.775-110.075****
Support: 103.70-104.40***, 101.95-102.30***, 99.95-100.15**
August feeder cattlewent lock limit mid-way through the session as money flow reversed in the cattle complex. Though we expect to see follow through, we are skeptical of the sustainability of higher prices. Trendline resistance comes in near 137.50, this will be tomorrows first roadblock. As mentioned in previous reports, the trend changing resistance pocket is closer to 140-141. Until we see consecutive closes above here the bears have the advantage on the chart.
Resistance: 136.85-137.50** 140.125-141.075****, 145.00-145.825****
Support: 134.125**, 130.00**
PM Boxed Beef / Choice / Select
Current Cutout Values: / 219.70 / 198.56
Change from prior day: / .06 / (.39)
Choice/Select spread: / 21.14
August lean hogstried to gain ground above yesterdays high but failed to attract new buyers at those levels. We continue to believe there is longer term value at these levels, but the chart is far from pretty. There is a lot of technical damage to repair, the bulls want to see consecutive closes back above 77.50-77.90, above there is 80.00.
Resistance: 77.50-77.90**, 80.00****, 84.85***
Support: 73.95-74.525***, 70.05**
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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.