LEANHOGS pushes through key technical resistance level
Lean Hogs (LEANHOGS) Technical Analysis Report for Aug 19, 2019 | by Techniquant Editorial Team
LEANHOGS finished Monday at 64.400 gaining $2.400 (3.87%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (LEANHOGS as at Aug 19, 2019):
Monday's trading range has been $2.325 (3.73%), that's below the last trading month's daily average range of $3.391. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LEANHOGS.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, the contract managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 64.200 (now S1), which is likely to act as support going forward. After having been unable to move lower than 62.000 in the prior session, the market found buyers again around the same price level today at 62.150. The last time this happened on August 15th, LEANHOGS actually lost -4.14% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 62.000 where further sell stops might get activated. With prices trading close to this year's low at 60.550, downside momentum could speed up should Hogs break out to new lows for the year. As prices are trading close to August's low at 61.525, downside momentum might accelerate should LEANHOGS mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for Lean Hogs. Out of 63 times, LEANHOGS closed higher 63.49% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 42.86% with an average market move of 0.07%.
With two out of the other two Meat and Livestock Commodity Markets closing higher today, the ones that stand out on the positive side are LIVECATTLE gaining 0.31% and FEEDCATTLE closing 0.2% higher. None of the markets ended the day in the red. Read more