Technically Speaking

Weekly Analysis: Livestock Markets

Source: DTN ProphetX

Live Cattle: The April contract closed $1.70 lower at $115.625. The futures contract posted a breakaway gap last week, confirming a move to a secondary (intermediate-term) downtrend. However the contract also rallied off an initial test of support near $112.65, a price that marks the 33% retracement level of the previous uptrend from $97.25 through the high of $120.325. The next downside target remains near $108.80, the 50% retracement level of the previous trend.

Feeder Cattle: The March contract closed $3.875 lower at $123.575. The secondary (intermediate-term) downtrend strengthened last week after thee futures contract posted a breakaway gap between $126.10 and $125.20. March feeders tested support near $120.40, a price that marks the 50% retracement level of the previous uptrend from $109.075 through the high of $131.70. The 61.8% retracement level is down near $117.75 (see the previous week's Technically Speaking chart).

Lean hogs: The April contract closed $1.95 higher at $70.25 last week. Despite the higher weekly close the secondary (intermediate-term) trend remains down following the previous week's bearish reversal. Resistance is at the high of $70.575 with initial support at $65.40, a price that marks the 33% retracement level of the previous uptrend from $55.05 through the $70.575 high.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.29 1/2, up 2 1/2 cents for the week. Despite the higher weekly close the secondary (intermediate-term) trend remains down following the previous week's bearish crossover by weekly stochastics above the overbought level of 80%. Initial support is at $3.17 3/4, a price that marks the 33% retracement level of the previous uptrend from $2.85 1/4 through the recent high of $3.34 (weekly close only). The 50% retracement level is down at $3.09 1/2.

Soybean meal: The March contract closed $11.40 lower at $331.60. The secondary (intermediate-term) trend has turned sideways due to a strengthening minor (short-term) downtrend. March bean meal closed below initial support at $332.30, a price that marks the 38.2% retracement level of the previous uptrend. The 50% level is down at $325.60, with the 61.8% level at $319.00.

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