Technical analysis: Will the decline in LHOG quotes continue?

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Lean Hog technical analysis summary

Sell Stop։ Below 104.

Stop Loss: Above 118.5.

Indicator Signal
RSI Neutral
MA(200) Neutral
Fractals Sell
Parabolic SAR Sell
Bollinger Bands Sell

Lean Hog chart analysis

On the daily timeframe, LHOG: D1 went down from the rising channel. A number of technical analysis indicators formed signals for further decline. We do not rule out a bearish movement if LHOG: D1 drops below its latest low and lower Bollinger band: 104. This level can be used as an entry point. Initial risk cap possible above latest up fractal, high since June 2021, upper Bollinger band and Parabolic signal: 118.5. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal high. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders after making a trade can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (118.5) without activating the order (104), it is recommended to delete the order: there are internal changes in the market that were not taken into account.

Fundamental analysis of commodities – Lean Hog

In the United States, stocks of frozen pork have increased. Will the decline in LHOG quotes continue?

According to the United States Department of Agriculture (USDA), stocks of frozen pork in the United States as of March 31, 2022 amounted to 487.2 million pounds. This is 8% more than on the same date in 2021 and 1.5% more than on February 28, 2022. It should be noted that in March of this year, hog slaughter in the United States decreased by 4% compared to March last year and amounted to 11.25 million heads. Pork production also fell 4% (to 2.46 billion pounds). Theoretically, an increase in inventories with a decrease in production may indicate a decrease in demand. It can be noted that the slaughter of pigs in the United States for the whole of 2021 decreased by 2% (to 129 million heads) compared to 2020. According to the USDA, the slaughter of pigs last week amounted to 1.903 million heads. This is 1.3% less than in the same week in 2021.

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