Technically Speaking

Weekly Analysis: Livestock Markets

Darin Newsom
By  Darin Newsom , DTN Senior Analyst
Connect with Darin:
Source; DTN ProphetX

Live Cattle: The February contract closed $2.60 lower at $121.975. The contract's secondary (intermediate-term) trend remains down with next support near $118.175. This price marks the 38.2% retracement level of the previous uptrend from $95.875 through the high of $131.95. With weekly stochastics bearish and still near the overbought level of 805 the contract could extend its sell-off to the 50% retracement mark of $113.90 and possibly the 61.8% level near $109.65.

P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]

Feeder Cattle: The January contract closed $2.975 lower at $150.325. The contract remains in a secondary (intermediate-term) downtrend. Next support is at $114.075, a price that marks the 38.2% retracement level of the previous uptrend from $114.95 through the high of $162.075. The 50% retracement level is near $138.50. Weekly stochastics are bearish and still near the overbought level of 80%.

Lean Hogs: The February contract closed $1.325 higher at $70.725. The contract's secondary (intermediate-term) trend remains sideways-to-down, with initial support at the 4-week low of $67.075. Resistance remains at the high of $73.30. The most recent signal by weekly stochastics was a bearish crossover above the overbought level of 80% the week of November 6.

Corn (Cash): The DTN National Corn Index (NCI.X, national average cash price) closed at $3.14 3/4, up 8 1/2 cents for the week. The NCI.X posted a bullish outside range last week before closing higher. This would indicate the market's secondary (intermediate-term) trend has turned up. Next resistance is at $3.18 1/4, a price that marks the 38.2% retracement level of the previous downtrend from $3.57 1/4 through the low of $2.95 1/4. The 50% retracement level is up at $3.25 3/4. Weekly stochastics are bullish, and quickly moving toward the overbought level of 80%.

Soybean meal: The January contract closed $5.30 higher at $335.50. Weekly stochastics are approaching the overbought level of 80%, indicating the recent build in bullish momentum could be nearing its end. Resistance is at the high of $341.80 from the week of July 17, the previous week's spike high of $349.70.

To track my thoughts on the markets throughout the day, follow me on Twitter: www.twitter.com\DarinNewsom

P[L2] D[728x90] M[320x50] OOP[F] ADUNIT[] T[]

Comments

To comment, please Log In or Join our Community .