Market Analytics and Technical Considerations
Reportage – Feeder Cattle
Daily Trading Insights
In the first ten minutes of trading, January Feeder Cattle gapped higher, making the low at the open (181.50) and then soaring to the session top at 183.075 in quick succession. The remainder of the session was spent stabilizing at the top of the trading range. It finally reached 182.625. The distance is between the Monday low (181.50) and the Friday high (181.20). An apparent bullish Cattle on Feed report that showed fewer postings than anticipated, fewer on-feed numbers, and a little better marketing figure was the cause of the excitement in Feeders.
The stock couldn’t stay above the 182.70 resistance level despite the euphoria, and the lower settlement was disappointing from a bullish standpoint. This is in addition to corn’s ongoing fragility. Bullish attitude may have been constrained by the Feeder Cattle Index, which has been steadily declining. If settling fails, price may attempt the support gulf before moving on to the 180.625 support level.
The rising 100-DMA, which is currently at 18.225, then serves as support. A check of resistance at 184.375 is expected if resistance at 182.70 is removed. The next point of resistance is 185.80.
As of 11/18/2022, the Feeder Cattle Index dropped and was at 174.64.
