Lean Hogs Test the Last Line of Defense

Lean Hogs
Commitments of Traders Update: Friday’s CoT report showed Managed Money were net buyers of 4,335 futures/options contracts, through June 7th. This expands their net long position to 21,630. Broken down, that is 46,526 longs VS 24,896 shorts.

Technicals (July): July lean hogs were able to stabilize on Friday after defending MUST HOLD support on Thursday. That pocket remains intact from 103.35-103.70. A failure here could take us back to fill the tiny gap left from May 16th, and potentially lower. On the resistance side of things, there are multiple hurdles for the Bulls. The first comes in from 106.75-107.75. A close back above this pocket could help spark some buying interest which could take us back near the 50 and 100 day moving average, which coincides with trendline resistance from the March 31st high.

Resistance: 106.75-107.75*** 110.50-111.625***, 114.00-114.825***

Support: 103.35-103.70****, 101.30-101.60**, 97.375-98.00****

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