December 23, 2008
February lean hog futures at the Chicago Mercantile Exchange on Friday (December 19) fell, posting a lower daily close, a weekly low close and the lowest closing level in six weeks.
A minor bearish head-and-shoulders top reversal pattern did form on the daily bar chart for February lean hogs the past five weeks.
The bears have gained fresh downside technical momentum to suggest a retest or push below the contract low of 60.50 cents a pound, scored on November 6. February hogs are now in a three-week-old downtrend from the November high of 67.10 cents.
Solid technical support is located at last week's low of 63.05 cents a pound and then at 62.50. Below that lies chart support at 62.00, 61.65, at 60.00 and then at the contract low of 60.50 cents.
Technical resistance is located at 62.00 and then at Friday's high of 62.45 cents. Above that lies chart resistance at 62.80 and then at last week's high of 62.97. Further technical resistance lies at 63.05 cents, which is the top of a downside price gap on the daily chart for February hogs, which was created on December 11.