Will Hog Prices Fill The Gap ?
Lean Hog Futures—Hog futures in the December contract is trading lower for the 5th consecutive session looking to fill the price gap on the daily chart that was created on September 12th at 61.75 as I still think there is room to run to the downside. Weak demand has been the main culprit for depressing hog and livestock prices as I will be patient and wait for a better chart pattern to develop before entering into a bullish or bearish position.
There is major support around the 60 level as it has bounced off that area on multiple occasions as it looks like it’s going to be tested one more time as the large money managed funds are long about 20,000 contracts as they still believe higher prices are ahead.
Hog prices are trading below their 20 & 100 day moving average as the trend is lower to mixed as this market has been very choppy over the last several months and if you have followed my previous blogs you understand that I do not like price gaps as they are generally filled and it looks like that situation is going to come to fruition once again.
Volatility in the hog market is extremely high as we’ve have had many limit up and limit down trading sessions so if you are involved make sure you place the proper amount of contracts while maintaining the risk of 2% of your account balance on any given trade.
CHART STRUCTURE: POOR
If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com
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