Technically Speaking

Weekly Analysis: Livestock Markets

Live Cattle: The June contract closed $4.575 lower at $148.80 last week. June live cattle posted a bearish reversal, indicating the secondary (intermediate-term) trend has turned down. Last week's high of $154.675 was a test of resistance at $154.825, the 67% retracement of the initial leg of the major (long-term) downtrend from $162.295 through the low of $138.60. Major support is near $137.30.

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Feeder Cattle: The May contract closed $7.725 lower at $209.725 last week. May feeder cattle posted a bearish reversal with its high of $220.875 a test of resistance near $220.20, the 61.8% retracement of the initial leg of the major (long-term) downtrend from $236.325 through the low of $193.90. Major support remains near $192.40, the 33% retracement level of its previous uptrend.

Lean hogs: The June contract closed $2.45 higher at $78.15 last week. The secondary (intermediate-term) trend remains sideways, though nearing an uptrend it June lean hogs move to a new 4-week high above last week's peak of $78.50. Weekly stochastics have turned indicating the contract could start to build momentum.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.57, down 8 cents for the week. The trend of the market remains sideways to down, with the last secondary (intermediate-term) signal by weekly stochastics a bearish crossover above the oversold level of 80% level the week of December 29, 2014. Support remains at $3.47, the 33% retracement level of the previous secondary uptrend from $2.81 through the December 2014 high of $3.80.

Soybean meal: The May contract closed $18.10 lower at $309.20 last week. The market has reestablished its secondary (intermediate-term) downtrend with last week's move to a new low of $308.30. Monthly stochastics are at or below the oversold level of 20% meaning the contract may have more room to the downside, possibly resulting in a test of its low of $292.30.

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