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Hog market rushes higher on virus

03/14/2014 @ 8:20am

Chicago Mercantile Exchange June live cattle posted moderate gains for the second day in a row as the bulls continue to edge toward a retest of the contract high at 138.05. The technical trends are bullish, but momentum has been somewhat lethargic in recent days. A bullish tone is seen to trade. Thursday's low at 135.80 stands as initial support. As long as that holds firm on a closing basis, the market will continue to target higher levels. Major support lies at the March 5 low at 134.32.

Note: The 9-day relative strength index was little changed at 69% on Thursday. Momentum is hovering just below the 70% overbought mark. Overall, momentum has been choppy in recent days and does not reveal a strongly trending market.

Apr Cattle     Jun Cattle      Mar Feeders     Apr Feeders 
   Second resistance        144.78         137.71           174.64          177.49 
   First resistance         144.32         137.28           174.30          176.74 
   Previous close           143.85         136.85           173.95          176.00 
   First support            143.17         136.11           173.48          175.16 
   Second support           142.48         135.37           173.00          174.33 
   Pivot point              143.63         136.54           173.82          175.91 
   10-day moving avg.       143.88         135.92           172.75          174.40 
   20-day moving avg.       143.11         134.53           171.92          173.35 
   40-day moving avg.       141.59         133.16           170.16          171.20 
   Nine-day RSI                 57%            69%              65%             71%

Note: The figures in the tables, except for percentages noted, are prices in U.S. dollars per hundredweight.

CME JUNE LIVE CATTLE (LCM4), combined pit and electronic trading

138.05 -- contract high hit March 5

138.05 -- last week's high

137.72 -- upper Bollinger Band line

136.97 -- Thursday's high

136.85 -- Thursday's close

135.80 -- Thursday's low

134.32 -- March 5 bearish reversal low, important nearby support

133.90 -- last week's low

131.34 -- lower Bollinger Band line

130.56 -- 100-day moving average

128.53 -- 200-day moving average

121.57 -- contract low hit May 2013

CME MAY FEEDER CATTLE (FCK4), combined pit and electronic trading

May feeder cattle futures climbed higher to touch a new contract high Thursday. The trend is bullish, but momentum is somewhat lethargic. This is a quiet market ticking higher, not an explosive fast-moving trend. On the upside, the 180.00 zone will act as a psychological bullish magnet overhead. Tuesday's low at 175.55 remains an initial support point to monitor. Declines under that floor would be a weak signal.

Note: The 9-day relative strength index hit 72% on Thursday. Momentum is slightly overbought, but has turned flat at the higher levels.

180.00 -- psychological target

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