Lean Hogs have been trading sideways since late 2015 and on the monthly chart is best illustrated by the neutral monthly chart (RSI = 51.940, Williams = -47.019, CCI = 34.8246, Highs/Lows = 0.000).
On 1D the MA200 works as a pivot attracting the price always after an annual High or Low. The price is currently trading above so we are expecting a sharp decline...
hogs are one of my indicators on trade front. a lot of optimism and hope. i think its about to drastically pull back which is unique. hogs have a few factors working in its favor, it just shows how bad things really may be
African swine flu is a big problem within china, I expect purchases from mainlain china to continue, however trade influences may change the dynamics of the pace as china seeks out an alternative sources.
in combination with china trade, african swine, weather is affecting the overall strenght of the pork market during grilling season.
i see more pain ahead. it's...
Lean Hogs are moving by strong seasonality - after grilling season ends (usually at June to August) the price usually goes sharply down. After that big move, price usually goes up until end of grilling season. Price is also at historical strong ressistence + COT report is also extremely bullish ( it shows us positions of biggest players in the market).
Lean Hogs (HE1!) are on a 1D Channel Up (MACD = 2.610, Highs/Lows = 4.5150, B/BP = 9.0280) but highly overbought (RSI = 72.148, STOCHRSI = 96.420) hence in need of a technically pull back. Based on the recurring patterns this will come in the form of a consolidation/ slow down and not a standard pull back. The next Higher High and TP is projected at 70.000.
- Factoring in the quote below, I think a Retracement of the move we saw, is in order.
- Also, given the historic price action a Retracement does seem likely.
Great little quote from some Forbes article:
"According to a United States Department of Agriculture (USDA) report, feeding China’s steadily increasing livestock population is a growing challenge. It...