March 31, 2009
CME lean hog bears in firm command
Chicago Mercantile Exchange June lean hog futures on Monday hit a fresh five-week low of 70.60 cents a pound. Prices are presently in a steep, near-term two-week-old downtrend on the daily bar chart.
Longer term, June hogs have been trending lower since the contract high of US$1.0025 was scored on July 3, 2008.
The next downside price objective for the powerful hog market bears to achieve is to produce a close below strong technical support at the contract low of 69.65 cents. A close below that level would produce more serious chart damage to suggest a fresh leg down in prices in the near term, including a challenge of longer-term technical support at 60 cents.
For the hog market bulls to begin to regain some fresh upside near-term technical momentum, they would have to push and close June futures prices above solid chart resistance at the March high of 75.92 cents.
Near-term technical resistance for June lean hog futures is located at 72 cents, at 72.50 cents and then at 73 cents. Support is located at Monday's low of 70.60 cents, at 70 cents and then at the contract low of 69.65 cents.
