Market Commentary
Judy Crawford312-277-0133
jcrawford@zaner.com
TODAY'S FEATURE
(2/2/2017 1:17:39 PM)
HOGS POISED TO TAKE OUT THEIR 70.00 RESISTANCE
HOGS POISED TO TAKE OUT THEIR 70.00 RESISTANCE? Hogs technically are suggesting that they are back for another attempt at the 70.00 resistance. They have been pushing up against that resistance since mid January. Four attempts at getting over it have failed. As of today they have set themselves up for another potential try with a stronger technical setup than with previous attempts. A possible trade suggestion and reasons:
Buy April hogs. Buy 69.80 stop. Protective stop 68.20. Potential projection 80.00. (Potential risk $640. Potential reward $4080). Margin: $1480.
Reasons for the Trade:
1. The monthly chart has a buy signal.
2. The weekly chart is triggering a buy this week.
3. On the weekly chart hogs rallied over the 100 avg. this week. That’s positive.
4. On the daily chart hogs have been in an uptrend since the Sept. low. They have had four waves up and appear to be starting a fifth wave up. If so, they should take out the 70.00 resistance.
5. On the daily chart they rallied back over both the 10 & 20 avg. on Tuesday and have held that gain since.
6. On the daily chart their recent selloff formed a reversal bottom. It was that formation that established the low on Dec. 27 followed by new highs.
7. Today was an inside day that can trigger a signal and market direction.
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