Recommendation for Lean Hog: Buy
Buy Stop : Above 56.68
Stop Loss : Below 53.56
Chart Analysis
On the daily timeframe #C-LHOG: Daily is rising toward the 200-day moving average MA(200), which is falling. We believe the bullish momentum will continue after the price breaches above the upper Donchian boundary at 56.68. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 53.56. After placing the pending order the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (53.56) without reaching the order (56.68) we recommend cancelling the order: the market sustains internal changes which were not taken into account.
Fundamental Analysis
China’s pork imports rose in July. Will the LHOG continue rising?
Demand for protein in the world’s most populous nation is rising as evidenced by rising China imports of pork in July. China’s July pork imports more than doubled to 430,000 tons from a year earlier, hitting a record monthly volume according to customs data. On the other hand pork inventory in US cold storage facilities were 464.373 million pounds on June 30, down from 619.454 million a year earlier, according to US Department of Agriculture monthly report. The 25% decline in US pork inventories in twelve months was attributed to slowed plant production after outbreaks of the coronavirus among meatpacking workers. Higher demand and lower supply of pork is bullish for LHOG.
Buy Stop : Above 56.68
Stop Loss : Below 53.56
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Buy | |
| Donchian Channel | Buy | |
| MA(200) | Sell | |
| Fractals | Buy | |
| Parabolic SAR | Buy |
Chart Analysis
On the daily timeframe #C-LHOG: Daily is rising toward the 200-day moving average MA(200), which is falling. We believe the bullish momentum will continue after the price breaches above the upper Donchian boundary at 56.68. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 53.56. After placing the pending order the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (53.56) without reaching the order (56.68) we recommend cancelling the order: the market sustains internal changes which were not taken into account.
Fundamental Analysis
China’s pork imports rose in July. Will the LHOG continue rising?
Demand for protein in the world’s most populous nation is rising as evidenced by rising China imports of pork in July. China’s July pork imports more than doubled to 430,000 tons from a year earlier, hitting a record monthly volume according to customs data. On the other hand pork inventory in US cold storage facilities were 464.373 million pounds on June 30, down from 619.454 million a year earlier, according to US Department of Agriculture monthly report. The 25% decline in US pork inventories in twelve months was attributed to slowed plant production after outbreaks of the coronavirus among meatpacking workers. Higher demand and lower supply of pork is bullish for LHOG.