The August Live Cattle contract rallied on Monday, May 22, 2017, trading to the high of the day at 123.15, this just below resistance at the 21 DMA (123.575) and the 38.2% resistance level (123.99) of the downmove from the May 4th high (134.55) to the May 18th low (117.475). It fell back from here and ended the session at 122.45. This is just below the 8 DMA at 122.60. The 8 DMA will act as a pivot for Tuesday and a rally above the moving average could see a revisit of the resistance levels and then the 13 DMA (124.45). Resistance then comes in at 125.75. A failure from here could see a revisit of the Friday high (121.40) and then 120.075.
The August Feeder Cattle contract rallied past a confluence of resistance at the 21 DMA (150.875), the 13 DMA (151.475) and the 38.2% retracement level (May 4th high (163.50) to the May 11th low (144.65)) at 151.85 trading up to 153.55. This is just below the 50% retracement level of 154.075. A break above here and then the May 15th high (154.25)set up the 61.8% retracement level (156.30) as a potential target for the upmove. Resistance then comes in at 157.275 and 158.80. Support is at the 38% retracement level and then the moving averages.
The July Lean Hogs rallied to resistance at 80.45, reaching 80.625 for the high of the day. This is a new high for the up move, but it failed at resistance and broke down to end the session close to the opening price, forming a
Doji candlestick. If the July Lean Hogs breakdown below the Monday low (79.675) on Tuesday, we can test support down at the 8 DMA (78.625) and then the 13 DMA (78.00). If the market rallies above the high then a move towards resistance at 82.30 is possible.