April Lean Hogs consolidated Wednesday’s decline today as it traded within its range. Can you imagine that! A limit up move being called consolidation. The volatility in Hogs has been impressive the past few sessions and today’s rally was no exception! It opened (54.40) well above yesterday’s settlement (52.975), tested the key level at 53.80 (session low at 53.725) and was off to the races. It made the high at 55.975 and settled nearby at 55.95. But!! It is still an inside candle from yesterday’s monster 4 pus handle trading range. The positive….. It closed near yesterday’s high (56.40) and at the top of today’s range which could be considered bullish. The negative…. It is still an inside candle! Thursday’s thrust higher hasn’t changed the pessimistic tone in the market. A failure from the high could see price continue its consolidation and increase the confusion in the market. There is a gap from Tuesday’s low (56.525) and yesterday’s high (56.40). This gap could also provide strong resistance. A rally above the Tuesday low could signal Wednesday’s collapse was a bottom and a run towards resistance at 58.25 is possible.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Friday, February 22nd at 2:30 pm. It is free for anyone who wants to sign up and the link for sign up is below. If you cannot attend live a recording will be sent to your email upon completion of the webinar.
**Call me for a free consultation for a marketing plan regarding your livestock needs.* *
Ben DiCostanzo
Senior Market Strategist
Walsh Trading, Inc.
Direct: 312.957.4163
888.391.7894
Fax: 312.256.0109,
www.walshtrading.com
RISK DISCLOSURE: THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES AND OPTIONS TRADING. THIS REPORT IS A SOLICITATION FOR ENTERING A DERIVATIVES TRANSACTION AND ALL TRANSACTIONS INCLUDE A SUBSTANTIAL RISK OF LOSS. THE USE OF A STOP-LOSS ORDER MAY NOT NECESSARILY LIMIT YOUR LOSS TO THE INTENDED AMOUNT. WHILE CURRENT EVENTS, MARKET ANNOUNCEMENTS AND SEASONAL FACTORS ARE TYPICALLY BUILT INTO FUTURES PRICES, A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS.