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Hog Futures Technical Analysis - Hog Futures Trading: 2021-03-09
Lean Hog Technical Analysis Summary
Below 85.5
Sell Stop
Above 91
Stop Loss
| Indicator | Signal |
| RSI | Sell |
| MACD | Sell |
| MA(200) | Neutral |
| Fractals | Neutral |
| Parabolic SAR | Sell |
| Bollinger Bands | Neutral |
Lean Hog Chart Analysis
Lean Hog Technical Analysis
On the daily timeframe, LHOG: D1 approached the uptrend support line. It should be broken down before opening a position. A number of technical analysis indicators formed signals for a decrease. We do not exclude a bearish move if LHOG falls below the last lower fractal: 85.5. This level can be used as an entry point. We can place a stop loss above the maximum since May 2019 and the Parabolic signal: 91. After opening a pending order, we can move the stop loss following the Bollinger and Parabolic signals to the next fractal minimum. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to the four-hour chart and place a stop loss, moving it in the direction of the bias. If the price meets the stop loss (91) without activating the order (85.5), it is recommended to delete the order: the market sustains internal changes that have not been taken into account.
Fundamental Analysis of Commodities - Lean Hog
China sells pork from its state reserves. Will the LHOG quotes move down?
The China Merchandise Reserve Management Center sold 670,000 tonnes of frozen pork last year. Its selling continues this year. In 2019, China experienced an ASF (African swine fever) outbreak, which killed about half of the pig stock. However, at the end of 2020, the Chinese Ministry of Agriculture and Rural Affairs reported that the production capacity of the pig industry recovered and already reached 90% of pre-ASF levels. In January 2020, Chinese hog livestock was 283 million heads and increased to 376 million over a year. Last week, new cases of ASF were recorded in Sichuan and Hubei provinces. However, there is no evidence yet that they will develop into another epidemic. In theory, the selling of pork from the Chinese state reserve and the restoration of the livestock may contribute to a correction in prices.
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