February hogs closed up $0.80 at $85.95. February hogs closed higher on Thursday as it extended this week’s rally. The high-range close sets the stage for a steady to higher opening when Friday’s night session begins trading. Stochastics and the RSI have turned bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 86.00 are needed to confirm that a low has been posted. If February renewed last week’s decline, December’s low crossing at 83.20 is the next downside target. First resistance is the 20-day moving average crossing at 86.00. Second resistance is December’s high crossing at 87.77. First support is last Wednesday’s low crossing at 84.15. Second resistance is December’s low crossing at 83.20.
February cattle closed down $1.92 at 126.60.February cattle plunged to its lowest level since last April on Thursday as it extends this month’s decline. Much of yesterday’s sell off was due to news that Cargill will close one of its slaughtering plants because of declining cattle supplies. The low-range close sets the stage for a steady opening when Friday’s night session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If February extends the aforementioned decline, last April’s low crossing at 124.30 is the next downside target. Closes above the 20-day moving average crossing at 132.08 would confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 130.81. Second resistance is the 20-day moving average crossing at 132.08. First support is yesterday’s low crossing at 125.52. Second support is last April’s low crossing at 124.30.
March feeder cattle closed down $2.37 at $145.85.March Feeder cattle closed sharply lower on Thursday extending the decline off December’s high. The low-range close sets the stage for a steady to lower opening when Friday’s night session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If March extends this month’s decline, last July’s low crossing at 145.10 is the next downside target. Closes above the 20-day moving average crossing at 153.37 are needed to confirm that a short-term low has been posted. First resistance is the 20-day moving average crossing at 153.37. Second resistance is January’s high crossing at 156.60. First support is yesterday’s low crossing at 145.22. Second support is last July’s low crossing at 145.10.
