US frozen pork stocks declined
Technical Analysis Summary Lean Hog: Buy
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Sell | |
| MA(200) | Neutral | |
| Fractals | Buy | |
| Parabolic SAR | Buy | |
| Bollinger Bands | Neutral |
Chart Analysis
On the daily timeframe, LHOG: D1 went up from the triangle and formed an ascending channel. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish move if LHOG rises above the last high: 75.8. This level can be used as an entry point. We can place a stop loss below the last lower fractal, the Parabolic signal and the lower Bollinger line: 65.7. After opening a pending order, we move the stop loss to the next fractal low following the Bollinger and Parabolic signals. 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 set a stop loss, moving it in the direction of the bias. If the price meets the stop loss (65.7) without activating the order (75.8), it is recommended to delete the order: some internal changes in the market have not been taken into account.
Fundamental Analysis of -
The USDA reported a decline in US pork stocks. Will the LHOG quotations grow?
USDA published its monthly Cold Storage review. It notes that the US frozen pork stocks in December 2020 amounted to 408 million pounds. This is 30% less than December 2019 and 20% less than November 2020 figures. In fact, at the beginning of this year, US frozen pork stocks were at their minimum since August 2010. The rise in grain prices and, as a result, in combined feed prices most probably raised the pork price. Last week, the USDA reported that weekly US pork exports peaked since late September 2020 at 45,200 tonnes. The increased demand could have been caused by another outbreak of African swine fever (ASF) in Guangdong province. This was recently reported by the Ministry of Agriculture and Rural Affairs of the People's Republic of China.