The Wild boar…. I mean the June Lean Hogs gap opened lower and tested support at 93.50, making the low just above it at 93.525. It looked like a full blown sell off was imminent. Stopping on a dime, the market reversed course and raced higher. It kept going higher until it took out yesterday’s high at 97.10 making the high at 97.325. This is just above resistance at 97.30. A pullback into the close saw Hogs settle at 96.45. It formed a bullish outside candle and a break out above the high could see price revisit the 61.8% retracement level at 98.00 and then move towards the high for the up move at 99.825. A failure from settlement could see price test yesterday’s low at 95.15. Support remains at 93.50.
For those interested I hold a weekly grain (with Sean Lusk) and livestock webinar on Thursday, April 11 at 3:00 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.* *
Senior Market Strategist
Walsh Trading, Inc.
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.