Hog Futures—Hog futures in the February contract settled lower for the 3rd consecutive session down another 65 points at 69.12 or 0.93% dropping over 300 points in the last 3 trading sessions due to overbought conditions in my opinion.
At the current time I’m not involved, but if you have been following my blogs you understand that I think hog prices look to move higher in my opinion, but prices still look extended as the risk/reward is not in your favor at this time to take a bullish position as I will wait for some type of price retracement back down to the 67.50 level.
Hog prices are trading far above their 20 and 100 day moving average as prices have rallied about 15% over the last couple of weeks as the volatility certainly has expanded and that situation is going to increase tremendously in the next couple weeks as prices topped out with a possible double top around the 72 level, however I do not believe that’s the case as I just think this is based on profit taking so look for an entry point to the upside.
CHART STRUCTURE: POOR
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