April Lean hogs
The Elliot wave theory claims trends begin and end in five wave. In the April Lean Hog daily price chart is appears that there is a five way pattern stemming from the highs of roughly 77.50 of early January. The apparent final wave of the sequence from last pullback to +/-72 also shows a five wave pattern (visible in the hourly chart) as the theory suggests. In my opinion one must employ several tools in attempting to gain any reliable insight into the the next plausible price path of any market. No one indicator by itself is adequate. I prefer to also rely on geometric convergence zones and momentum divergence. In doing this I am lead to believe that the market will soon see a retracement. I do not suggest jumping into the pen quite yet however. I believe the market is still vulnerable to a slight dip to +/-67.700. Either way my trigger point for a long entry calls for a breach of 68.20. From here I’d expect an advance to roughly 69.500. A hold above this level should produce a follow through to 71.700-72.00. Please follow along with my in my attempt to stay one step ahead of the next move of this and other futures contracts. Please feel free to contact me at Walsh Trading to discuss my analysis and suggested strategies to take advantage of this scenario.
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