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Hog Futures Technical Analysis - Hog Futures Trading: 2019-09-17
Higher Chinese import bullish for LHOG
China exempted US pork from additional tariffs and stated support for more imports from US. Will the LHOG continue gaining?
China’s pig farming has been decimated by African swine fever outbreak, studies estimate China’s pig supply may have fallen by about 40% from a year ago. Pork is the most consumed meat in China, Beijing announced last week it will not increase tariffs on certain US agricultural products, including pork. And stated it supported buying soybeans, pork and other agricultural products in accordance with market principles and WTO rules. Lower pig supply and higher Chinese demand is bullish for LHOG.
On the daily timeframe the LHOG: D1 is rising toward the 200-day moving average MA(200).
- The Parabolic indicator gives a buy signal.
- The Donchian channel indicates uptrend: it is widening up.
- The MACD indicator gives a bullish signal: it is below the signal line and the gap is narrowing.
- The Stochastic oscillator is in the overbought zone, this is bearish.
We believe the bullish momentum will continue after the price breaches above the upper boundary of Donchian channel at 68.257. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below the lower Donchian boundary at 59.151. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. If the price meets the stop loss level (59.151) without reaching the order (68.257), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Technical Analysis Summary
| Order | Buy |
| Buy stop | Above 68.257 |
| Stop loss | Below 59.151 |
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