December Lean Hog maybe moving into a 3 drives pattern. RSI trend is up and hasn't been broken. Hog index is now at 60.92. We may see sideways trading now until a definite direction is decided. Watching for trendlines to fail top or bottom. New pivots will be formed middle of next week producing a small range of resistance and support.
Comment:
Hogs met S1 today after sell off last Thursday, Friday. Rebounded to fill gap made last week. Hot index fell once more to 59.08 which is just under the pivot line. December now in line with market. Tomorrow, see buy to pivot, then possible sell off down and below uptrend to S2 if bulls can't force it up past 60.200 with solid buy at the end of day.
Comment:
Hogs is following the 3 drives pattern. Rose up today off of the S1 support for the last drive, but didn't achieve pivot. Hog index fell again today to 57.66. We may see a turn soon for further downside, however we may see one or two more pushes to pivot at 59.675. Be cautious in your entry and direction. If Hogs falls we could see a sell to 53.775. Pivots will readjust next week so S1 and S2 will change and be lower. RSI at 63.21 has not been achieved where turn around have happened before.
Comment:
Hogs moved up again today to pivot. The question is, will it continue up as the hog index continues to fall as it did today, or will it move down again off of the 3 drives and follow the index? We will see tomorrow. 61 becomes target for upside, while 58 becomes target for down.
Comment:
Hogs continue to follow 3 drives. Fell off of highs yesterday. Next downside target S1.
Comment:
Friday Hogs gapped down and looked like they might fall to S1 but took off higher and then were beaten back end of trading to pivot. We might be in a trading range between 61 and 57. Looking for an RSI to 63.44 for break or plunge. We might see a continued buy to R1. Volume wasn't as high as usual which might suggest continued buying Tuesday. Right now I am looking at a falling Hog index as my guide for long term outlook. Monday's index will tell the tale. We will be into a new pivot scenario this next week which will lower R1, R2, R3.
Trade closed manually:
Hogs produced a long legged doji today signalling a possible reversal.
