Feeder Cattle

Near Term (Basis May): Bullish, looking for a setback

The bulk of this week’s trade (other than Monday) has seen the feeder cattle market try to sell off to a small extent in what looks like a try at picking a top. So far the top-picking has not worked out well as this week has seen three of the four trading days make a new high for the rally. What we would note is the weak closes into a market that is showing increasing open interest on the rally and a rising ADX…,that is close to reaching the mid-to-high 30 readings next week as a reason for us to start turning slightly less aggressive as a bull and looking harder for a trend failure signal. Nothing that we have seen yet meets those requirements, but we could end up tomorrow with as weekly reversal pattern to the downside into a relatively high ADX reading as a warning sign. 

Long Term: Bullish

Our long-term technical outlook is bullish. Major resistance is at 151.20 cents, while support is 120.50 and then 118.90 cents.2017-04-20 16_46_32-042017_SF_Daily_Commentary_Feeder_Cattle [Read-Only] - Microsoft Word2017-04-20 16_46_27-042017_SF_Daily_Commentary_Feeder_Cattle [Read-Only] - Microsoft Word

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