Technical Analysis #C-LHOG : 2021-05-18

[IFC Markets]

Recommendation for Lean Hog:Sell​

Sell Stop : Below 107

Stop Loss : Above 115



Indicator : Sell

MACD : Sell

MA(200) : Neutral

Fractals : Neutral

Parabolic SAR : Sell

Bollinger Bands : Neutral

Chart Analysis​

On the daily timeframe, LHOG: D1 broke down the uptrend support line. A number of technical analysis indicators formed signals for further decline. We do not rule out a bearish movement if LHOG: D1 falls below the last low: 107. This level can be used as an entry point. The initial risk limitation is possible above the maximum since August 2014, the last upper fractal and the Parabolic signal: 115. After opening the pending order, we move the stop-loss following the Bollinger and Parabolic signals to the next fractal maximum. Thus, we change the potential profit / loss ratio in our favor. After the transaction, more cautious traders can switch to the four-hour chart and set a stop-loss, moving it in the direction of the trend. If the price overcomes the stop-loss (115) without activating the order (107), it is recommended to delete the order: there are internal changes in the market that were not taken into account.

Fundamental Analysis​

Chinese authorities announced the restoration of Lean Hog livestock. Will the LHOG prices continue to decline? The Ministry of Agriculture and Rural Affairs of China reported that Lean Hog livestock increased by 1.1% in April 2021 compared to March and is already 23% higher than in 2020. The number of hogs in China has reached 97.6% from the level before the African swine fever (ASF). Recall that in 2018-2019, due to this disease, the hog population in China decreased by about half (50%), and the LHOG prices almost doubled.