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Hog Futures Technical Analysis - Hog Futures Trading: 2023-06-07
Lean Hog Technical Analysis Summary
Above 88.8
Buy Stop
Below 79.9
Stop Loss
| Indicator | Signal |
| RSI | Buy |
| MACD | Sell |
| MA(200) | Buy |
| Fractals | Buy |
| Parabolic SAR | Buy |
| Bollinger Bands | Neutral |
Lean Hog Chart Analysis
Lean Hog Technical Analysis
On the daily timeframe, LHOG: D1 has broken out of a descending channel and surpassed the 200-day moving average line. Several technical analysis indicators have generated signals for further upward movement. We do not exclude a bullish movement if LHOG: D1 rises above its last peak at 88.8. This level can be used as an entry point. The initial risk limit could be set below the 200-day moving average line at 79.8. After opening a pending order, we adjust the stop-loss based on Bollinger Bands and Parabolic signals to the next fractal minimum. This way, we improve the potential profit/loss ratio in our favor. The most cautious traders can switch to the four-hour chart after executing the trade and set a trailing stop-loss in the direction of movement. If the price surpasses the stop level (79.8) without activating the order (88.8), it is recommended to remove the order as internal changes occur in the market that were not accounted for.
Fundamental Analysis of Commodities - Lean Hog
The United States tightened the requirements for keeping pigs. Will the increase in LHOG quotes continue?
The U.S. Supreme Court has upheld a law in the state of California that requires increased pen sizes for pigs raised for sale within the state. The aim of this law is to improve the conditions for agricultural animals. A similar law may come into effect in the state of Massachusetts. Market participants are concerned that expanding the area of pig farms may require additional capital investment and increase the cost of American pork. The United States Department of Agriculture (USDA) reported that pork production in the United States already decreased by 4% YoY in April 2023. In California specifically, commercial hog slaughter in April 2023 decreased by nearly 65% compared to April 2022. Investors fear that such an animal welfare law may eventually extend to other American states. Data on pork production in the United States for May will be released on June 22. Another factor contributing to the rise in pork prices could be the cases of African swine fever (ASF) in Europe if they continue to spread.
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