Feeder Cattle Futures Analysis: In January, feeder cattle futures experienced a failure at our pivot pocket, specifically within the range of 246.82-247.60, which kept the market intact. This failure led to a decline in prices, reaching our 3-star support pocket from 242.75-243.77. This area is crucial for the market; if it fails to hold on a closing basis, it could trigger additional technical selling pressure, potentially pushing prices down to 239.62-240.15. Resistance levels are noted at 249.85-250.80* and 253.075-253.90, with the pivot point at 246.82-247.60, and support levels at 242.75-243.77 and 239.62-240.15.
Seasonal Tendency Update: Historical price averages for January futures over 5, 10, 15, 20, and 30-year timeframes are presented below. The chart indicates that November tends to be a volatile and indecisive month for price trends.
When evaluating the potential of a trading strategy, it’s crucial to assess whether it aligns with your financial situation.
No claim is made that any trading account will achieve profits or losses similar to those displayed in hypothetical scenarios.
In reality, there are often significant discrepancies between hypothetical performance results and the actual outcomes of a trading program.
One limitation of hypothetical performance results is their preparation, which is typically done with the advantage of hindsight.
Hypothetical trading does not entail financial risk, and thus, it cannot fully account for the impact of financial risk in real trading.
For instance, the capacity to endure losses or the commitment to a trading program despite losses are critical factors that can negatively influence actual trading results.
Moreover, there are numerous other factors related to the markets or the execution of specific trading programs that cannot be fully captured in hypothetical performance results, all of which can adversely affect actual trading outcomes.
